Latest news with #DiogoGuillen
Yahoo
10 hours ago
- Business
- Yahoo
Brazil central bank still assessing if 15% interest rate is appropriate, says official
BRASILIA (Reuters) -Brazil's central bank is still assessing whether the benchmark interest rate at 15% is appropriate to bring inflation down to its 3% target, economic policy director Diogo Guillen said on Monday. Policymakers kept rates unchanged in late July at a near 20-year high after 450 basis points in hikes since last September. They signaled borrowing costs would remain steady for a "very prolonged" period. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership Speaking at an event hosted by Warren Investimentos, Guillen stressed that the guidance signaled more rate holds. "We are still evaluating whether this is the appropriate rate to bring inflation to target," he said. "Once that rate is determined, it will remain unchanged for a very long period." Guillen acknowledged recent downside surprises in consumer prices readings, but said the key issue with inflation is it remains above target, with expectations and projections also unanchored from the official goal. Prices were up 5.23% in the 12 months through July, down from 5.35% in the previous month and below forecasts. Guillen emphasized economic growth is losing steam, as expected following the central bank's tightening stance. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 hours ago
- Business
- Yahoo
Brazil central bank still assessing if 15% interest rate is appropriate, says official
BRASILIA (Reuters) -Brazil's central bank is still assessing whether the benchmark interest rate at 15% is appropriate to bring inflation down to its 3% target, economic policy director Diogo Guillen said on Monday. Policymakers kept rates unchanged in late July at a near 20-year high after 450 basis points in hikes since last September. They signaled borrowing costs would remain steady for a "very prolonged" period. Speaking at an event hosted by Warren Investimentos, Guillen stressed that the guidance signaled more rate holds. "We are still evaluating whether this is the appropriate rate to bring inflation to target," he said. "Once that rate is determined, it will remain unchanged for a very long period." Guillen acknowledged recent downside surprises in consumer prices readings, but said the key issue with inflation is it remains above target, with expectations and projections also unanchored from the official goal. Prices were up 5.23% in the 12 months through July, down from 5.35% in the previous month and below forecasts. Guillen emphasized economic growth is losing steam, as expected following the central bank's tightening stance. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
10 hours ago
- Business
- Reuters
Brazil central bank still assessing if 15% interest rate is appropriate, says official
BRASILIA, Aug 18 (Reuters) - Brazil's central bank is still assessing whether the benchmark interest rate at 15% is appropriate to bring inflation down to its 3% target, economic policy director Diogo Guillen said on Monday. Policymakers kept rates unchanged in late July at a near 20-year high after 450 basis points in hikes since last September. They signaled borrowing costs would remain steady for a "very prolonged" period. Speaking at an event hosted by Warren Investimentos, Guillen stressed that the guidance signaled more rate holds. "We are still evaluating whether this is the appropriate rate to bring inflation to target," he said. "Once that rate is determined, it will remain unchanged for a very long period." Guillen acknowledged recent downside surprises in consumer prices readings, but said the key issue with inflation is it remains above target, with expectations and projections also unanchored from the official goal. Prices were up 5.23% in the 12 months through July, down from 5.35% in the previous month and below forecasts. Guillen emphasized economic growth is losing steam, as expected following the central bank's tightening stance.
Reuters
4 days ago
- Business
- Reuters
Brazil's central bank stresses need for prolonged restrictive rates despite softer inflation
BRASILIA, Aug 14 (Reuters) - Brazil's inflation has shown more downside surprises than analysts had expected, but remains above target and is being driven by strong demand, requiring contractionary monetary policy for a "very long" period, a central bank official said on Thursday. Economic policy director Diogo Guillen said in a presentation delivered during a closed-door meeting and later published by the central bank that the labor market has provided considerable support to consumption and income, while services inflation remains above the level consistent with meeting the official 3% target.
Reuters
30-06-2025
- Business
- Reuters
Brazilian economists expect central bank to cut rates in early 2026 despite hawkish signals
BRASILIA, June 30 (Reuters) - Brazilian private economists still expect the central bank to start cutting interest rates next January, even after policymakers reinforced guidance that borrowing costs will remain steady for a "very prolonged" period to anchor inflation to target, according to a survey released on Monday. The central bank's weekly survey shows economists project the benchmark Selic rate to be held at 15% through December, before falling to 14.75% in January. Policymakers earlier this month raised the Selic rate by 25 basis points to its current level, bringing the total amount of tightening to 450 basis points since September, and signalled a pause at the next meeting in late July. Following the hike, the median forecast in the survey shifted to a 25-basis-point cut in January, with the Selic rate projected to end 2026 at 12.50%. That outlook remained unchanged on Monday. Diogo Guillen, the central bank's economic policy director, emphasized on Friday that policymakers view any rate-cut debate as premature. The latest survey also showed that the expected inflation rate for 2025 was cut for a fifth straight week to 5.20%, but projections for subsequent years remain unchanged above the 3% official target, which has a 1.5-point tolerance range either side. In recent speeches, central bank Governor Gabriel Galipolo and Guillen reiterated policymakers' commitment to bringing inflation to the 3% target over the "relevant horizon" - the 18-month period influenced by current policy decisions. Policymakers have flagged a rate pause despite projecting inflation to be 3.6% over that horizon. That forecast was based on market expectations that the Selic rate would be held steady at 14.75% until January 2026 - a more dovish path than has materialized. Galipolo and Guillen added that inflation is still expected to converge to the central bank's target under alternative, undisclosed rate paths.
