06/25/2024 – 8:35
The re-anchoring of inflation expectations is seen by the Central Bank board as an essential element to ensure the convergence of inflation to the target, showed the minutes of the last meeting of the Monetary Policy Committee (Copom), in which the decision was taken to interrupt the sequence of cuts in the basic interest rate.
In the document released this Tuesday, the 25th, the BC also reported that it marginally raised the neutral real interest rate hypothesis in its models to 4.75%.
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“The Committee unanimously assesses that the re-anchoring of inflation expectations should be pursued regardless of the sources behind the de-anchoring,” the BC said in the document.
The Copom also reiterated that the uncertain global environment and domestic scenario marked by resilient activity, increased inflation projections and unanchored expectations demand greater caution.
Last Wednesday, the Copom decided to maintain the Selic rate at 10.50% per year, in a unanimous decision by its board to interrupt the cycle of monetary easing that began in August last year.
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