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MNI BRIEF: Prolonged Tightening If Expectations Worsen - BCB

The Central Bank of Brazil decided to hike its official Selic rate by 50 basis points to 11.25% last week.

MNI (BRASILIA) - A further deterioration in inflation expectations could lead to a more prolonged monetary policy tightening cycle, the Central Bank of Brazil said in minutes from its last meeting, released on Tuesday.

"Copom believes that the conduct of monetary policy is a fundamental factor in reanchoring expectations and will continue to make decisions that safeguard credibility and reflect the fundamental role of expectations in inflation dynamics. A further deterioration in expectations could lead to a more prolonged monetary policy tightening cycle," the document stated.

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MNI (BRASILIA) - A further deterioration in inflation expectations could lead to a more prolonged monetary policy tightening cycle, the Central Bank of Brazil said in minutes from its last meeting, released on Tuesday.

"Copom believes that the conduct of monetary policy is a fundamental factor in reanchoring expectations and will continue to make decisions that safeguard credibility and reflect the fundamental role of expectations in inflation dynamics. A further deterioration in expectations could lead to a more prolonged monetary policy tightening cycle," the document stated.

Keep reading...Show less