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Economic Research

Brazil’s Central Bank Remains Dovish

Monetary Policy Minutes

Brazil’s central bank (BCB) released the minutes of its October 19 monetary policy meeting where the monetary policy committee (COPOM) unanimously left the benchmark SELIC rate at 10.75. The minutes still reflect a dovish tone, with expected short term risks materializing but inflation still converging to the BCB’s central target.

September’s headline inflation increased to 0.45% m/m from August’s 0.04%, and the same dynamic was seen in core inflation. Meanwhile, the economic activity index IBC-br and other activity indicators continue to suggest the[...]

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