MNI BRIEF: BCB Keeps Rate At 15% Again, Signals Prolonged Hold

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

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

"The Committee emphasizes it will remain vigilant, that future monetary policy steps can be adjusted and that it will not hesitate to resume the rate hiking cycle if appropriate," the board added. 

The Monetary Policy Committee (Copom) ended its tightening cycle in July after seven consecutive increases, bringing the rate to its highest level since 2006. The decision was in line with market expectations. (See MNI BCB WATCH: Copom To Hold At 15% Amid Improving Outlook)