Brazil’s central bank acknowledges further deterioration in inflation dynamics
2022.05.10 14:41
FILE PHOTO: People walk in front the Central Bank headquarters building in Brasilia, Brazil March 22, 2022. REUTERS/Adriano Machado
BRASILIA (Reuters) – Brazil’s central bank highlighted the effects of its aggressive monetary tightening cycle are still to be seen, but acknowledged that, even so, an additional deterioration was observed in inflation, minutes from its last policy meeting showed on Tuesday.
In the minutes of the meeting held between May 3-4, when the rate-setting committee known as Copom raised the benchmark rate to 12.75%, policymakers pointed out that both the short term inflationary dynamics and the longer-term projections worsened, paving the way for a likely extension of the cycle, with an adjustment of lower magnitude in June.
