MNI BRIEF: Fresh Rate Hikes Not In Main Scenario - Campos Neto

The governor of Brazil's Central Bank, Roberto Campos Neto said Thursday that raising interest rates again is not part of the Copom's main scenario, and the intention of the official communication was not to provide any guidance.

The statement of the decision to hold the Selic rate at 10.50% last week included the word "vigilant," which is typically used when the likelihood of a rate hike is higher than that of a cut. "An increase in interest rates is not our base scenario, the language used is compatible with not providing guidance," Campos Neto said during the Quarterly Inflation Report press conference.

When asked by MNI, he denied telling Tarcísio de Freitas, currently São Paulo governor and a possible candidate backed by former president Jair Bolsonaro for the presidency, that he would be his Finance Minister if he decided to run in the 2026 election. The Brazilian newspaper Folha de São Paulo reported the information two weeks ago. (See MNI INTERVIEW: Brazil's Copom On Hold Until December - Kfoury)