MNI BRIEF: Guidance To Reduce Markets Volatility - BCB's David

Central Bank of Brazil Deputy Governor for Monetary Policy Nilton David said Monday that the board's intention with May's forward guidance would be to minimize market volatility.

"In our last meeting, there was strong conviction that the hiking cycle was not over and that the pace would be slower than it had been until then (100bps). If we have this strong conviction and if there is perhaps some market unease about the exit process, it was then decided that communicating that we are moving away from the December forward guidance would help minimize this volatility and would be a reasonable step to take," he said at an event sponsored by Itau.

The BCB’s Copom committee raised its Selic rate by another 100 basis points this month to 14.25%, while signaling a smaller increase at its next meeting in May. (See MNI INTERVIEW: BCB Might Cut Sooner as Activity Slows - Serra)