BRASILIA (Reuters) – Brazil’s central bank on Tuesday labeled the unanchoring of inflation expectations and the country’s overheating economy as “highly relevant” inflationary risks, adding that concerns over potential pressures from a weaker currency persist.
In the minutes of its latest policy meeting on Jan. 28-29, when it raised interest rates by 100 basis points to 13.25% and signaled a matching hike in March, policymakers also stated that while some upside inflation risks had materialized, “they are still present prospectively.”
(Reporting by Marcela Ayres)
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