Brazil Central Bank Warns of Rising Inflation Risks
Brazil's central bank kept a neutral risk outlook despite rising inflation expectations. Policymakers will monitor oil shocks while continuing the easing cycle.
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The Central Bank of Brazil maintained a neutral inflation risk outlook on Tuesday after cutting interest rates 25 basis points to 14.5%. Policymakers debated shifting to a hawkish bias as conflict involving the United States, Israel, and Iran persists. Rising long-term inflation expectations now threaten the 3% official target, potentially forcing a pause in the easing cycle.
