Banco Central do Brasil Monetary Policy Committee (Copom) decision:
- 5 Copom members voted in favour of a 25 bp cut, 4 members voted for a 50 bp reduction
- Committee unanimously judges that the uncertain global scenario and the domestic scenario, marked by resilient economic activity and deanchored expectations, require greater caution
- Monetary policy should continue being contractionary until the consolidation of both the disinflation process and the anchoring of expectations around the targets
- Reinforces, with special emphasis, that the extension and adequacy of future changes in the interest rate will be determined by the firm commitment of reaching the inflation target in the relevant horizon
- Current context requires serenity and moderation in the conduct of monetary policy
- Global environment has become more adverse because of the heightened and persistent uncertainty about the beginning of the easing cycle in the US
- The environment continues to require caution from emerging market economies
