MNI BRIEF: BCB Board Debated If Balance Of Risks Is Neutral

Central Bank of Brazil board members debated whether the balance of risks for inflation remained slightly asymmetrical — though less so than at the previous meeting — or whether it could already be considered neutral, minutes showed Tuesday.

"As for the balance of risks, all members judged that the risks previously outlined by the Committee were relevant throughout the period and are still relevant in the current outlook," the minutes stated.

"The scenario of greater uncertainty increased both upside and downside inflation risks for the inflation outlook, with a debate as to whether it still remained slightly asymmetrical, but less asymmetrical than in the previous meeting, or whether it could already be defined as neutral," the board added.

The BCB hiked its Selic rate by 50 basis points to 14.75% last week, offered no forward guidance for its next meeting, and stated that borrowing costs should remain restrictive for a "prolonged period." (See MNI INTERVIEW: BCB To Hold Rates Steady Until 1Q 2026 - Kawall)