{"id":93253,"date":"2016-07-20T21:41:07","date_gmt":"2016-07-21T01:41:07","guid":{"rendered":"http:\/\/countingpips.com\/?p=93253"},"modified":"2016-07-21T06:44:32","modified_gmt":"2016-07-21T10:44:32","slug":"brazil-holds-rate-as-copom-looks-for-further-disinflation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/07\/brazil-holds-rate-as-copom-looks-for-further-disinflation\/","title":{"rendered":"Brazil holds rate as Copom looks for further disinflation"},"content":{"rendered":"<div id=\"inves-4127389373\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 20, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/www.centralbanknews.info\/\"><u>CentralBankNews.info<\/u><\/a><br \/>\n&nbsp; &nbsp; Brazil&#8217;s central bank left its benchmark Selic rate steady at 14.25 percent, saying higher-than-expected inflation may persist due to food prices, uncertainty regarding the implementation of economic adjustments and a prolonged period of above-target, high inflation that can delay the process of disinflation.<br \/>&nbsp; &nbsp; In the first meeting of the Central Bank of Brazil&#8217;s policy committee chaired by Ilan Goldfjan, the statement by Copom flushed out some of the issues that resulted in a unanimous policy decision. Under its past president, Alexandre Tombing, the central bank typically issued very brief statements.<br \/>&nbsp; &nbsp; While concern over inflation triggered the decision to maintain the rate, Copom added his could be countered by the possibility of a quicker implementation of economic changes that improve confidence and lower inflation expectations and the possibility that spare capacity in the economy leads to more rapid disinflation that expected.<br \/>&nbsp; &nbsp; Brazil&#8217;s inflation rate eased to 8.84 percent in June from 9.32 percent in May.<br \/>&nbsp; &nbsp; Although Copom said its projections for inflation remained relatively stable, they were lower than in the last inflation report and inflation was projected around 4.5 percent in 2017.<br \/>&nbsp; &nbsp; However, the central bank added that financial markets project inflation next year of around 5.3 percent, above the bank&#8217;s midpoint target of 4.5 percent. This year the central bank has a target range of 2 percentage points around that target but this narrows to 1.5 points in 2017.<br \/>&nbsp; &nbsp; The central bank added that recent data show a stabilization of economic activity in the short term, but the economy continues to operate with a &#8220;high level of idleness,&#8221; with the external environment challenging and the dynamics of the global economic recovery fragile and uncertain.<br \/>&nbsp; &nbsp; Brazil&#8217;s economy contracted by an annual rate of 5.4 percent in the first quarter of this year, its eight consecutive quarter of shrinkage.<\/p>\n<p>&nbsp; &nbsp; <a href=\"http:\/\/www.centralbanknews.info\/\">www.CentralBankNews.info<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By CentralBankNews.info &nbsp; &nbsp; Brazil&#8217;s central bank left its benchmark Selic rate steady at 14.25 percent, saying higher-than-expected inflation may persist due to food prices, uncertainty regarding the implementation of economic adjustments and a prolonged period of above-target, high inflation that can delay the process of disinflation.&nbsp; &nbsp; In the first meeting of the Central [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-93253","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=93253"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93253\/revisions"}],"predecessor-version":[{"id":93254,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93253\/revisions\/93254"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=93253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=93253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=93253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}