MNI BRIEF: No Signals And No Closed Doors In Policy - BCB Gov

Central Bank of Brazil Governor Gabriel Galípolo said Thursday that the correct interpretation of the board’s lack of guidance is a data-dependent stance. He said this means there are neither signals nor closed doors to further moves.

"What I think is the correct interpretation based on what we have been communicating with this data-dependent stance. And I have seen this in several interpretations. It means that we are not giving any kind of signal about what you are going to do and that you are also not closing the door on what we might do,” he said at the press conference following the presentation of the quarterly monetary policy report.

The BCB held rates at 15% this week and said its strategy of maintaining policy steady for a “very prolonged period” is “appropriate,” maintaining a hawkish tone that included a renewed warning that it would not hesitate to hike again if necessary. (See MNI INTERVIEW: BCB January Cut Still On The Table - Le Grazie)