MNI BRIEF: Hiking Cycle Interrupted, Not Paused - BCB's David

Central Bank of Brazil Deputy Governor for Monetary Policy Nilton David said Thursday that the board decided on an “interruption,” not a pause, in order to evaluate the impacts of the tightening cycle implemented so far.

“Given that uncertainty remains, we continued with the interruption phase. In other words, it wasn’t a pause, it was an interruption,” he said at an event hosted by Porto Asset.

"Several factors shifted significantly and intensely over a short period of time. That’s why the Central Bank decided to implement an interruption, trying to sense and understand the consequences of everything that has been done so far before taking the next step. That’s the phase we’re still in," he added.

The BCB recently decided to hold its official Selic rate at 15.00%, saying that the "interruption of the rate hiking cycle" will continue in further meetings to "examine its yet-to-be-seen cumulative impacts." (See MNI WATCH: BCB Holding For Now, Curbing Early Easing Bets)