Brazil recession, global economy to help curb prices: Central bank
BRASILIA: Most members of the Brazilian central bank board believe a recession at home and downward pressures on the global economy will help bring inflation back to target in 2017, signaling policy-makers may stay put in coming months. That majority in the central bank's eight-member monetary policy committee, known as Copom, surprised markets last week by keeping its benchmark Selic rate at 14.25 percent after signaling an increase to rein in prices. Two Copom members voted to raise the Selic to 14.75 percent. The controversial decision raised suspicions of political interference by President Dilma Rousseff, who opposed a rate increase out of fear it could hamper her government's plans to jumpstart the economy. "It is necessary to monitor the impact of recent changes in the domestic and external environments in the balance of risks to inflation, which, combined with the adjustments already implemented in monetary policy, could strengthen the inflation convergence scenario for target of 4.5 percent in 2017.