The so-called interest rate stands still at 13.75 percent, while the central bank calls for “caution and restraint” with reference to uncertainty regarding the inflation outlook.
The decision was in line with market expectations. But the hawkish language from the central bank surprised some investors as inflation fell to 3.94 percent in May, which is within the bank’s target range of 1.75 to 4.75 percent.
Brazilian President Lula da Silva criticized the country’s central bank governor Roberto Campos Neto in May for holding back the economy.
— He does not prioritize Brazil. His priorities lie with the previous government and with those who make money from higher interest rates, the president said at the time.