Brazil Keeps Inflation Goal, Making Room for Rate Cuts
- Monetary council introduces continuous target starting in 2025
- Policymakers have held interest rate steady at six-year high
Fernando Haddad
Photographer: Daniel Ramalho/AFP/Getty ImagesThis article is for subscribers only.
Brazil will keep pursuing a 3% inflation target, a decision that is likely to help the central bank launch a cycle of interest rate cuts as soon as August.
Central bank President Roberto Campos Neto, Finance Minister Fernando Haddad and Planning Minister Simone Tebet, who make up the national monetary council, also decided on Thursday to get rid of specific objectives for each calendar year and instead introduce a constant, medium-term inflation goal. Their decision was unanimous.