Brazilian Central Bank keeps interest rates unchanged

The Central Bank of Brazil (BCB) did not change the benchmark interest rate as expected. According to the statement made by BCB, the benchmark Selic interest rate remained at 13.75 percent. The market expectation was that there would be no change in interest. BCB paused the interest rate hike, which it had carried out for 12 consecutive meetings by a total of 1175 basis points, at its September 2022 meeting. BCB did not change the interest rate in its last 3 meetings. The Board stated that it will evaluate whether the Selic interest rate maintenance strategy will be sufficient to ensure inflation convergence for a sufficiently long period and will remain vigilant. The Board reiterated that future monetary policy steps may be adjusted and that it will not hesitate to continue the tightening cycle if the fight against inflation does not progress as expected.