Brazil central bank to maintain restrictive policy after rate cut
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Brazil's central bank will maintain a restrictive monetary policy stance after cutting its benchmark Selic rate to 14.75%. The bank aims to control persistent inflation and believes the economy is growing above its potential, with the labor market being a key indicator.
Brazil's central bank reduced its benchmark Selic rate by 25 basis points to 14.75% at its March 17-18 meeting. The rate had been held at 15% since July to control inflation. The central bank will maintain a restrictive monetary policy stance. The bank believes the economy is growing above its potential, with a strong labor market. External factors, such as the war in Iran, are expected to drag down global GDP. The central bank's institutional framework is designed to be less susceptible to political noise.
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