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Brazil central bank says a final interest hike was widely debated

Added 09-27-22 10:04:05am EST - “Brazil's central bank highlighted on Tuesday the lack of consensus among policymakers for its decision last week to pause an aggressive monetary policy cycle, noting that a further "residual" interest rate hike was "widely debated."…” - News.yahoo.com

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Posted By TheNewsCommenter: From News.yahoo.com: “Brazil central bank says a final interest hike was widely debated”. Below is an excerpt from the article.

BRASILIA (Reuters) - Brazil's central bank highlighted on Tuesday the lack of consensus among policymakers for its decision last week to pause an aggressive monetary policy cycle, noting that a further "residual" interest rate hike was "widely debated."

In the minutes of its Sept. 20-21 meeting, policymakers reinforced their cautious stance in the fight against inflation, even with more recent data showing an easing of price pressures following cuts by the government to taxes on fuel and energy.

The decision to leave the benchmark Selic interest rate at 13.75% after 12 consecutive hikes came in a vote of 7-to-2, the first split decision since March 2016, with dissenters voting for a final 25-basis-point hike.

"On the one hand, the additional interest rate increase would reinforce the vigilance stance and reflect the observation of a stronger than expected activity," stressed the minutes.

"On the other hand, caution and the need to evaluate, over time, the cumulative effects to be observed of the intense and timely monetary policy cycle already undertaken would be in favor of the maintenance."

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