In minutes of the Nov. 4 policy meeting, Brazil's central bank said evidence that high interest rates are weighing on economic activity is gradually accumulating, but accelerating inflation and worsening inflation expectations require monetary policy to remain tight. The board kept the Selic rate at 13.75% after five consecutive cuts totaling 125 bps. The minutes said economic activity is losing momentum after a period of high borrowing costs; the labor market has shown some cooling but remains

In minutes of the Nov. 4 policy meeting, Brazil's central bank said evidence that high interest rates are weighing on economic activity is gradually accumulating, but accelerating inflation and worsening inflation expectations require monetary policy to remain tight. The board kept the Selic rate at 13.75% after five consecutive cuts totaling 125 bps. The minutes said economic activity is losing momentum after a period of high borrowing costs; the labor market has shown some cooling but remains resilient. Headline and core inflation have accelerated and inflation expectations have risen above the 3% target across all horizons.