Inflation leads Central Bank to consider keeping interest rates high
Journalist, with a postgraduate degree in marketing and a master's in communication and consumption. Specialist in communication and consumption and political analysis.
TL;DR
- The Copom assesses that keeping interest rates high for longer is necessary to control inflation.
- Inflation expectations for 2026 and 2027 are above the central target of 3%.
- Factors contributing to price pressure include rising oil prices, El Niño's impact on agriculture and energy, and currency depreciation.
- Despite signs of economic slowdown, the Central Bank will continue monitoring indicators to ensure inflation converges to the target.
- The Copom recently decided to maintain the Selic rate at 13.75% annually, halting a series of five consecutive cuts.