Banco Central do Brasil has left its Selic rate unchanged at 13.75%. This was the consensus expectation.
Summary Headlines via Reuters:
- Will remain vigilant
- Will assess if the strategy of maintaining the Selic rate for a sufficiently long period will be enough to ensure the convergence of inflation
- Will persist in its strategy until consolidating disinflation and the anchoring of expectations around its targets
- Will not hesitate to resume the tightening cycle if the disinflationary process does not proceed as expected
- Relevant horizon for monetary policy includes 2023 and 2024
- External economic outlook remains adverse and volatile
- Markets seem more sensitive to fiscal fundamentals, including in developed countries
- Brazilian economic indicators suggest a more moderate growth rate
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ps. The pace of rate hikes is slowing.
- In October: RBA raises its cash rate by 25bp
And, on Wednesday in Canada:
Perhaps the RBNZ is about to join in the slowing: