Summary hrts:

  • decision was unanimous
  • baseline scenario and balance of risks indicate it is appropriate for interest rate hike cycle to advance significantly into the restrictive territory
  • will persevere with its strategy until consolidating both disinflation and the anchoring of expectations around its targets
  • recent doubts about fiscal framework raised the risk of deanchoring inflation expectations
  • growth indicators released since the last meeting show an evolution slightly below expectations for brazilian economy
  • consumer inflation remains high, price increases were higher than expected, both in the more volatile components and on the items associated with core inflation
  • possibility of a winter covid-19 wave and the emergence of the omicron variant add uncertainty about the pace of recovery in advanced economies