Brazil’s central bank said its current pace of interest rate increases remains adequate as faster inflation persists.
Policy makers led by bank President Alexandre Tombini voted unanimously on Jan. 15 to raise the benchmark Selic rate to 10.5 percent from 10 percent, marking the sixth straight 50 basis-point increase. The central bank’s monetary policy will remain especially vigilant as consumer prices rise slightly more than anticipated, officials said in the minutes of their Jan. 14-15 meeting.
The central bank considers it “appropriate to continue the current pace of adjustments to the monetary conditions,” policy makers said in the minutes. “Available information suggests certain persistence in inflation, which reflects in part the fact service inflation continues at high levels.”
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