MNI BRIEF: BCB Didn't Intend To Provide Guidance - Galipolo
The BCB's deputy governor for monetary policy Gabriel Galipolo speaks at an event.
The Central Bank of Brazil did not intend to provide guidance by using the word "interrupt" in the official stattement when it held rates unchanged last week, Deputy Governor for Monetary Policy Gabriel Galipolo said on Tuesday.
"Clearly, we do not want to make any kind of signal, commitment, or guidance for the future. What we did was communicate using the word 'interruption,' but we intend to keep it open to see how things will unfold from now on. So, that was the intention we aimed to convey, both in the minutes and in the statement," he said at an event sponsored by Warren Investments.
The BCB held its official Selic rate at 10.50% on Wednesday, keeping borrowing costs unchanged for the first time after nearly a year of aggressive easing. Copom’s unanimous decision contrasted with the split vote for a 25-basis-point cut in May, when four dissenters called for a 50bp reduction, including Galipolo. (See MNI INTERVIEW: Brazil's Copom On Hold Until December - Kfoury)