Brazil’s Central Bank pondered raising interest rates by more than 1%, Copom minutes show

Last week, the Central Bank increased the introductory interest rate by one percentage point, to the level of 6.25% per year, and indicated that it would repeat the measure in the next Copom meeting, as it continues its aggressive monetary tightening cycle to tame inflation.

RIO DE JANEIRO, BRAZIL - The Central Bank pondered raising interest rates beyond the 1-point adjustment it eventually adopted, but came to the conclusion that the rise was adequate to ensure the convergence of inflation to the target in 2022 while more cautiously assessing the state of the economy after the impact caused by the Covid-19 crisis.

"The Copom (Monetary Policy Committee) evaluated the costs and benefits of accelerating the pace of interest rate hikes," according to the Copom minutes published on Tuesday, pointing out that three considerations were taken into account.

In the first place, the Central Bank . . .

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