Inflation & Prices
Brazil Central Bank Says Tightening Cycle to Be Guided by Target
- Prices rose 4.83% on year; 0.52% on month in December
- Governor Galipolo writes letter with plans to tame inflation
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Brazil’s central bank reinforced its pledges of two more full percentage point hikes, amid a more adverse scenario where annual inflation remained stubbornly above target.
Policymakers see annual inflation hovering above the bank’s tolerance range until the third quarter of the year, after which it should slow down even if it remains higher than its 3% goal, Governor Gabriel Galipolo wrote in a letter published Friday. The economic scenario is proving less uncertain and more adverse, reinforcing the need to lift borrowing costs to 14.25% by March.