MNI BRIEF: BCB Policy Caution Boosted Disinflation - Minutes

The Central Bank of Brazil said that the cautious conduct of monetary policy has contributed to disinflationary gains, the minutes from its last meeting released Tuesday showed, with the board noting that changes in communication express "growing confidence in the disinflation process."

"The Committee assesses that the cautious conduct of monetary policy has contributed to disinflationary gains and, once again, reaffirms its firm commitment to the BCB’s mandate of bringing inflation to the target. Furthermore, it notes that inflationary drivers remain adverse," the document stated.

The BCB decided to hold its Selic rate at 15.00% last week. (see MNI BCB WATCH: Copom Sticks With Hawkish Tone, No Cut Hints )

According to the minutes, the board concluded that "the ongoing strategy of maintaining the current level of interest rate for a very prolonged period is appropriate to ensure the convergence of inflation to the target". (See MNI INTERVIEW: BCB January Cut Still On The Table - Le Grazie)