Banco Central do Brasil hikes the benchmark rate, as expected
- the policy decision was unanimous
- sees another policy adjustment of same magnitude at next meeting
- reaffirms commitment to "partial normalization" process
- elevated fiscal risk continues to create upward asymmetry to the balance of inflation risks
- current inflation shocks are temporary, but will continue to closely monitor their evolution
- uncertainty about economic growth remains larger than usual, but normality should return gradually
- 75 bps rate hike at next meeting depends on the evolution of economic activity, the balance of risks, inflation outlook and expectations
- adjustment is compatible with inflation converging to target over the relevant horizon, which includes 2022
The summary above is via Reuters, bolding is mine. BCB sees the rise in inflation as temporary but is hiking anyway ....the BCB is not a global trend setter for major central banks, but makes ya think ....
