Due to the "uncertain" global and domestic scenario, in which increasing inflation projections and unanchored expectations require greater caution.

The Monetary Policy Committee of the Central Bank of Brazil has unanimously chosen to interrupt the cycle of falling interest rates, and has decided to maintain the rate at 10.5%, due to the "uncertain" global and internal scenario, in which rising inflation projections and unanchored expectations demand greater caution.

"The current situation, characterized by a stage of the disinflationary process that tends to be slower, a greater unanchoring of inflation expectations and a challenging global scenario, requires serenity and moderation in the conduct of monetary policy," the entity noted. after the monetary policy meeting.

Along these lines, he explained that monetary policy must remain contractionary for a sufficient period of time at a level that consolidates not only the disinflation process but also the anchoring of expectations around its objectives.

Thus, the Committee has maintained that it will remain alert and remember, "as always," that any future interest rate adjustment will be dictated "by the firm commitment" to bring inflation closer to the target.

For the bank, the external environment remains adverse, due to the high and persistent uncertainty regarding the flexibility of monetary policy in the United States and the speed with which inflation will fall sustainably in several countries.

"The Committee assesses that the scenario continues to require caution on the part of emerging countries," can be read in the statement shared by the bank.

In relation to the internal scenario, the set of indicators of economic activity and the labor market continue to show greater dynamism than expected.