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Published on Thursday, October 29, 2015

Brazil | COPOM: the plan is still to leave interest rates unchanged

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Summary

The minutes of last week's monetary policy meeting confirmed that the Monetary Policy Committee (COPOM) is now focused on making the inflation converge to the 4.5% target in 2017 rather than in 2016. This change of focus takes some pressure out of monetary policy. However, the fiscal situation is a bigger source of concern, which requires the COPOM to remain "vigilant".