Banco Central do Brasil Monetary Policy Committee (Copom) decision:
-
5 Copom members voted in favour of a 25 bp cut, 4 members voted for a
50 bp reduction - Committee
unanimously judges that the uncertain global scenario and the
domestic scenario, marked by resilient economic activity and
deanchored expectations, require greater caution - Monetary policy
should continue being contractionary until the consolidation of both
the disinflation process and the anchoring of expectations around the
targets - Reinforces, with
special emphasis, that the extension and adequacy of future changes
in the interest rate will be determined by the firm commitment of
reaching the inflation target in the relevant horizon - Current context
requires serenity and moderation in the conduct of monetary policy - Global environment
has become more adverse because of the heightened and persistent
uncertainty about the beginning of the easing cycle in the US - The environment
continues to require caution from emerging market economies
This article was written by Eamonn Sheridan at www.forexlive.com. Source