MNI BRIEF: Copom Notes Improved Inflation Outlook -BCB Minutes

The Central Bank of Brazil recognized the improvement in its outlook for inflation and emphasized “a gradual moderation in ongoing activity, a certain decrease in current inflation, and some reduction in inflation expectations” in the minutes from its last meeting released Tuesday.

"Endorsing the Committee’s expected scenario so far, there is a gradual moderation in ongoing activity, a certain decrease in current inflation, and some reduction in inflation expectations. However, the Committee will remain vigilant and will not hesitate to resume the rate-hiking cycle if appropriate," the document stated.

The BCB decided to hold its Selic rate at 15.00% for a third consecutive meeting last week.

Recent inflation readings still point to a more favorable dynamic compared with what was expected at the beginning of the year, Copom said, reiterating that rates will remain higher for longer. (See MNI BRIEF: BCB Confident Rates Stay At 15% For Long - Minutes)