Shafaqna English- The central bank of Brazil acknowledged on Tuesday(11 Aug 2026) that its tight monetary stance is increasingly weighing on the economy, but warned that inflation continues to be fueled by demand, underscoring the necessity of keeping borrowing costs restrictive.
The minutes from the bank’s most recent rate-setting meeting, which resulted in a fourth consecutive 25-basis-point reduction and brought the Selic rate down to 14.00%, revealed that policymakers now view both inflation and growth conditions more positively. However, they once again avoided giving any indication about the future direction of the easing cycle.
Source: Reuters