Brazil Central Bank Says It’s Alert to Greater Price Pressures

Brazil’s central bank said its monetary policy needs to remain tight as both the war in the Middle East and domestic demand pressure inflation.

Policymakers led by Gabriel Galipolo said a greater deanchoring of inflation expectations has become evident for longer time horizons, particularly for 2028, according to the minutes to their April 29 rate decision, when they lowered the benchmark Selic by a quarter-point to 14.5%. Board members said they are committed to combating second-round effects from the global oil price shock.