Brazil Central Bank Holds Forward Guidance Amid Risks
Monetary policy director Nilton David stated that uncertainty from the Middle East conflict prevents the bank from providing forward guidance. Policymakers intend to keep interest rates in restrictive territory until inflation converges toward the 3% target.
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Brazil's central bank ruled out forward guidance on interest rates as conflict risks in the Middle East cloud the inflation outlook. Policymakers kept borrowing costs at 14.50% following two consecutive 25-basis-point cuts to address headline inflation of 4.39%. Investors face restrictive policy as energy price volatility prevents the bank from signaling future rate paths.
