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2025-12-16 19:02:30
[Hawkward Stance: Why Does the Central Bank of Brazil Hold the Sword of Interest Rate Hikes?] ⑴ The Central Bank of Brazil released the minutes of its December 9-10 policy meeting on Tuesday, deciding to maintain the benchmark interest rate at its current high of 15.00%. ⑵ The minutes showed that the committee believed economic activity was continuing its moderate slowdown, current inflation was declining, and the downward trend in inflation expectations was continuing. ⑶ The central bank emphasized that its prudent monetary policy had been effective in combating inflation. ⑷ The committee reiterated its vigilance and made it clear that it would not hesitate to resume the interest rate hike cycle if the situation required it. ⑸ The central bank reaffirmed its firm commitment to bringing the inflation rate back to the target level, highlighting its continued hawkish policy stance. ⑹ The continuation of the high-interest-rate environment reflects that, between the economic slowdown and inflation risks, the Central Bank of Brazil still prioritizes curbing inflation as its primary policy objective.
