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Political Turmoil Makes Life Tough for Brazil's Central Bank
Brazil kept its benchmark interest rate unchanged for a third straight meeting as renewed political instability complicates policy makers’ response to a shrinking economy and surging prices. The central bank’s board kept the key rate at a nine-year high of 14.25 percent, as forecast by all but one of the 50 economists surveyed by Bloomberg. The eight-member board had two dissenters who voted to raise the Selic to 14.75 percent in the first divided decision since October 2014. Policy makers removed language from their statement used in the past three communiques about keeping rates on hold for a prolonged period. ... (full story)
