Brazil’s Central Bank Says Its Hiking Cycle Has Room to Run

Brazil’s central bank said it was important to signal that its cycle of interest rate hikes will continue in the face of an adverse inflation outlook, according to the minutes to its March 18-19 policy meeting.

Local food prices are high and can also drive up costs in other sectors, while services inflation has accelerated in recent readings, policymakers wrote in the minutes to the meeting. Last week, they raised the benchmark Selic by a full percentage point to 14.25%, and signaled a smaller rise ahead.