MNI BRIEF: BCB Majority Sees Significant Change in Scenario
Brazil's Central Bank Roberto Campos Neto said debate was centered on technical criteria, and all arguments were taken into consideration.
Brazil's Central Bank Roberto Campos Neto said Wednesday the majority of Copom members who voted in favor of slowing the pace of rate cuts to 25 basis points last week in a split decision, believed it "was clear" that the changes in the economic backdrop "had been significant" and required a less aggressive loosening of policy.
"The majority's understanding was clear, that the changes had been significant and that we should respond with a change in the pace. Within this group, some even believed that we had the arguments to change the risk balance, as explicitly stated in the minutes. The debate was centered on technical criteria, and all arguments were taken into consideration," Campos Neto said.
"In the previous minutes, we issued a statement mentioning that the guidance had conditions. During the meeting, we discussed these conditions. The debate revolved around the gradation of the conditions, not their validity," he said in a speech to the BCB's annual conference in Brasilia. (See MNI POLICY: Copom Dissenters Feared Reaction Function Misstep)