LatinNews Daily - 28 September 2022

In brief: Brazil’s central bank hints at further interest rate hikes

*Brazil’s central bank (BCB) has released its latest report on the country’s monetary policy stressing that it may raise the benchmark interest rate again. On 21 September BCB’s rate-setting committee (Copom) voted to keep Brazil’s interest rate at 13.75% after 12 consecutive rate hikes. The report released on 27 September explained this decision but stressed that the Copom “will not hesitate in resuming the tightening cycle” if inflationary pressures do not subside as projected by BCB. The report stated that the current economic moment has been “uncertain and volatile”. It highlighted the improvement in Brazil’s job market and the fact that the GDP grew more than expected in Q2 2022, but also noted that the global economy is expected to decelerate in the next months. Annual inflation stood at 8.73% in Brazil in August, and BCB wants to ensure that it approaches its target of 3.5% +/- 1.5 for 2022.

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