Economics
Brazil Central Bank Warns of Persisting Inflation, Rate Hike
- Central bank’s Serra says there’s very high amount of stimulus
- December inflation +1.35% m/m +4.52% y/y: statistics agency
This article is for subscribers only.
Brazil’s central bank said inflation pressures could persist in the beginning of the year, eventually leading to an interest rate hike, after a report showed consumer prices surged in December by the most since 2003.
While reaffirming that a record-low rate of 2% is adequate for now, Monetary Policy Director Bruno Serra said Brazil shouldn’t have such a level of monetary stimulus in normal circumstances, when the economic impact of the pandemic subsides. Inflation jumped 1.35% in December from the month prior, topping all estimates in a Bloomberg survey, the nation’s statistics bureau reported earlier on Tuesday.