The Brazilian Central Bank did not change the interest rate.

The Central Bank of Brazil (BCB) did not change the benchmark interest rate in line with the expectations.

The bank held Selic at 13.75 percent in its fifth consecutive meeting late Wednesday.

In a statement, policymakers mostly kept the tone of their previous communications, including warning of additional rate hikes if price increases do not slow as expected. They also stated that inflation expectations showed “additional deterioration” especially in long-term forecasts.

On the one hand, the recent reintroduction of fuel taxes has reduced the uncertainty of financial results in the short-term, and on the other hand, the current scenario in which high volatility prevails in financial markets and long-term inflation expectations are cleared from targets, underlined that more attention should be paid while formulating monetary policy.