Brazil’s Central Bank released the version in English of the Minutes of COPOM’s (Monetary Policy Committee) December 5th and 6th, 2017 meeting.
“Taking into account the baseline scenario, the balance of risks, and the wide array of available information, the Copom unanimously decided to reduce the Selic rate by 0.5 percentage point, to 7.0 percent per year, without bias. The Committee judges that convergence of inflation to the target over the relevant horizon for the conduct of monetary policy, which includes 2018 and 2019, is compatible with the monetary easing process”.
“The Committee judges that economic conditions prescribe accommodative monetary policy, i.e., interest rates below the structural level. The Copom emphasizes that the evolution of reforms and necessary adjustments in the Brazilian economy contributes to the reduction of its structural interest rate. The Committee will continue to reassess estimates of this rate over time”.