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Copom Reference "No Commitment" To Partial Normalization

BRAZIL
  • Full link to the statement: https://www.bcb.gov.br/en/pressdetail/2392/nota
  • Key passages as follows:
  • "At this moment, the Copom's baseline scenario indicates that a partial normalization of the policy rate remains appropriate to keep some degree of monetary stimulus during the economic recovery. However, the Committee emphasizes that there is no commitment with this plan, and that future steps of monetary policy could be adjusted to assure the achievement of the inflation target."
  • "For the next meeting the Committee foresees the continuation of the partial normalization process with another adjustment of the same magnitude in the degree of monetary stimulus."
  • As widely expected the statement appears hawkish on the margin.

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