Brazil Central Bank Chief Defends Decision to Slow Rate Cuts
- Central bankers cut interest rates to 10.5% last week
- Board members were caught off guard by change of guidance
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Brazil’s central bank chief justified his decision to change the institution’s written guidance on interest rates during a public speech, one day after another board member said such a move should have been discussed with the whole board and communicated through more formal channels.
Roberto Campos Neto made it clear during a speech in Washington last month that the bank may not make the additional half-point cut it had previously signaled in statements, opening the door for the smaller quarter-point reduction it delivered last week.