MNI BRIEF: BCB Keeps Rate At 15% Again, No Cut In Sight

The Central Bank of Brazil (BCB) unanimously decided Wednesday to hold its official Selic rate at 15.00% again, reinforcing that keeping rates at this level for a "very prolonged period" remains "appropriate".

Borrowing costs have been at this level since June.

"The current scenario, marked by heightened uncertainty, requires a cautious stance in monetary policy. The Committee evaluates that the present strategy of maintaining the interest rate at its current level for a very prolonged period is appropriate to ensure the convergence of inflation to the target," the statement said.

Last month, Copom said that keeping policy at the current level would "be enough to ensure the convergence of inflation to the target".

"The Committee emphasizes it will remain vigilant, that future monetary policy steps can be adjusted and that, as usual, it will not hesitate to resume the rate hiking cycle if appropriate.," the board added. (See MNI INTERVIEW: Brazil Potential GDP Explains Stronger Activity)