MNI BRIEF: Brazil's Copom Unanimously Holds Rates At 10.50%
The decision was unanimous after split votes in May.
The Central Bank of Brazil (BCB) kept interest rates on hold Wednesday for the first time after nearly a year of aggressive easing, in a unanimous decision that maintained its official Selic rate at 10.50% on Wednesday -- and stood in contrast to a deeply split May vote.
"The Committee unanimously decided to interrupt the easing cycle, highlighting that the uncertain global scenario and the domestic scenario, marked by resilient economic activity, an increase in its own inflation projections and deanchored expectations, require greater caution," said the statement that offered no forward guidance for the next meetings.
The pause was in line with market expectations. In May, the BCB's Monetary Policy Committee (Copom) reduced rates by 25 basis points in a split decision that saw four deputies dissent in favor of the 50 basis point cut indicated by the prior meeting's guidance.
Brazil's easing cycle started in August last year when the interest rate peaked at 13.75%. Since then, the BCB's board cut 50bp pace per meeting and 25bp in the previous meeting.(See MNI BCB WATCH: Copom To Hold Rates, With Risk Of Another Split)