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Brazil Holds Key Interest Rate at 15% Amid Inflation Vigilance
Brazil Holds Key Interest Rate at 15% Amid Inflation Vigilance
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BTCCSquare news:
Brazil's central bank maintained its benchmark interest rate at 15%, signaling a cautious stance on inflation. The decision reflects a commitment to anchoring inflation expectations, with policymakers prepared to tighten further if price pressures resurge. Governor Gabriel Galípolo emphasized monetary policy as the primary tool to combat inflation, dismissing expectations of swift easing.
Recent data paints a mixed picture: headline inflation cooled to 5.13% year-over-year in August, aided by declining electricity and food costs. Yet stubbornly high services inflation keeps economists wary of long-term expectation drift. Banco de México projects inflation will remain above its 3% target through 2026, suggesting prolonged monetary restraint.
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