Brazilian Central Bank keeps interest rates steady as expected

The Brazilian central bank did not change its benchmark interest rate as expected. The Brazilian central bank kept its benchmark interest rate unchanged for the seventh consecutive time on Wednesday, but took a more dovish tone about future steps in its policy statement regarding the possibility of upcoming rate hikes. According to a statement by the Brazilian central bank, the benchmark Selic rate remained at 13.75 percent. The market expectation was that the rate would not change. The bank paused the rate hike, which had been carried out for 12 consecutive meetings by a total of 1,175 basis points, at its September 2022 meeting. "Copom reaffirmed its commitment to setting monetary policy to achieve inflation targets and decided that the strategy of maintaining the Selic rate for a long time was sufficient to ensure inflation convergence," the statement said.