On June 21, the Brazilian Central Bank once again kept interest rates unchanged at 13.75 percent. In a statement to the markets, the bank did not allude to a possible change of course in its hawkish monetary policy, as many economists anticipated.
Less than a week later, the bank issued the minutes of its policy meeting, which adopted a much softer tone.
This showed that the monetary policy committee is divided on how it should send signals on future moves, with a majority of members siding with the understanding that economic conditions “might allow the necessary confidence to be built up to begin a parsimonious process of inflection at the next meeting,” in August.
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