MNI BRIEF: No Specific Data To Assess Further Rate Hikes - BCB

The Central Bank of Brazil governor Gabriel Galipolo said Thursday that there isn't a specific data point the board is monitoring to assess whether there will be an additional rate hike at the next meeting.

“There isn’t a specific data point, we will analyze all indicators. There’s no mechanical reaction,” he said at the press conference following the presentation of the quarterly report.

The BCB raised its interest rate by 25 basis points last week to 15.00% and signaled that, if the expected scenario materializes, “the committee foresees an interruption of the rate-hiking cycle to examine its yet-to-be-seen cumulative impacts.”

Deputy governor Diogo Guillen stressed that the BCB’s forecast for inflation to remain above target through the end of 2027 does not mean the bank has extended the target horizon. (See MNI INTERVIEW: BCB To Hold Rates At 15% Until Next Year- Velho)