The post Brazil holds key interest rate at 15% appeared on BitcoinEthereumNews.com. Holding borrowing costs at the highest level in nearly two decades, Brazil’s central bank left its benchmark Selic interest rate at 15%. The decision, which came on Wednesday, had been widely expected by analysts and marked the second consecutive time policymakers had kept rates unchanged. The move is consistent with the bank’s cautious approach to inflation as they pledged to maintain the rate, a key gauge of short-term health in the economy, at a very low level for an extended period.  They held out the possibility of ratcheting it up again should they sense inflationary pressures picking up. The statement underscored the bank’s desire to re-anchor overnight expectations and eventually bring inflation back to its 3% target.  The head of the Brazilian central bank, Gabriel Galípolo, emphasized vigilance, adding that monetary policy is the key and first line of defense against inflation, which nobody should expect him to ease quickly. Inflation shows mixed signals Recent data show inflation is beginning to cool, with consumer prices rising 5.13% in the 12 months through August, the second consecutive month of slower gains. Falling electricity and food costs helped ease household expenses, but services inflation remains stubbornly high. Economists warn that consecutive upticks in headline inflation could still unmoor long-term expectations. But inflation remains well above the target, and service prices are still increasing. Economists worry that such back-to-back gains could contribute to long-term inflation expectations. In its survey, Banco de México forecasts inflation will reach 4.83% in 2025 and slow to 4.30% by 2026. Both levels remain above the bank’s target rate of 3 percent, so it has been gun-shy thus far in cutting rates too aggressively. The Brazilian real, which has gained about 5% since the last meeting, also helps curb importing costs. However, worldwide conditions, from commodities to shifts in… The post Brazil holds key interest rate at 15% appeared on BitcoinEthereumNews.com. Holding borrowing costs at the highest level in nearly two decades, Brazil’s central bank left its benchmark Selic interest rate at 15%. The decision, which came on Wednesday, had been widely expected by analysts and marked the second consecutive time policymakers had kept rates unchanged. The move is consistent with the bank’s cautious approach to inflation as they pledged to maintain the rate, a key gauge of short-term health in the economy, at a very low level for an extended period.  They held out the possibility of ratcheting it up again should they sense inflationary pressures picking up. The statement underscored the bank’s desire to re-anchor overnight expectations and eventually bring inflation back to its 3% target.  The head of the Brazilian central bank, Gabriel Galípolo, emphasized vigilance, adding that monetary policy is the key and first line of defense against inflation, which nobody should expect him to ease quickly. Inflation shows mixed signals Recent data show inflation is beginning to cool, with consumer prices rising 5.13% in the 12 months through August, the second consecutive month of slower gains. Falling electricity and food costs helped ease household expenses, but services inflation remains stubbornly high. Economists warn that consecutive upticks in headline inflation could still unmoor long-term expectations. But inflation remains well above the target, and service prices are still increasing. Economists worry that such back-to-back gains could contribute to long-term inflation expectations. In its survey, Banco de México forecasts inflation will reach 4.83% in 2025 and slow to 4.30% by 2026. Both levels remain above the bank’s target rate of 3 percent, so it has been gun-shy thus far in cutting rates too aggressively. The Brazilian real, which has gained about 5% since the last meeting, also helps curb importing costs. However, worldwide conditions, from commodities to shifts in…