Brazil's central bank more flexible on interest rates
In the minutes of its last rate-setting meeting, the bank said all members were satisfied with the progress of disinflation, but remained cautious about high inflation expectations for 2017.
Last week, the bank kept its benchmark Selic rate steady at 14.25% for the ninth straight time in a bid to lower inflation that is near 9%.
The central bank then listed conditions for a rate cut, including the persistence of food price shocks, uncertainty around fiscal adjustment measures and a pick-up in disinflation.
The bank also removed previous references to a lack of room to cut rates, as well as a mention to lower private inflation expectations before any changes in policy. ■