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The Brazilian National Bank maintains prices due to uncertainty



The Brazilian market has risen as investors join Bolsonaro's call to reduce the deficit

The Brazilian National Bank sees more clearly at national level, as Jair Bolsonaro was elected president last month by the minutes of the last monetary policy meeting.

The price pressure caused by the deterioration of the currency, due to the course that took place earlier this year, is largely closed and inflation has risen to a reasonable level, the members of the Bank's Committee are writing on the institution's website on Tuesday. . Ilan Goldfajn's monetary policy chiefs kept the key interest rate last week at the final level of 6.5 percent.

"The members of the committee underlined the uncertainties at the national front, which led to a reduction in implicit risk premiums in Brazil's financial assets, which contributed to the reduction of inflationary imbalances," the officials write.

Brazilian financial markets have risen last month when investors associate with Bolsonaro's call to reduce the deficit and accept some kind of pension reform this year. These additions have also helped postpone financial markets betting on those tightening cycles before mid-2019, as inflation expectations approach the official target.

Below are the other highlights of the Central Bank's meeting on 31 October:

* The risk tolerance of emerging economies has stabilized, unlike the deterioration observed in previous months.

* The levels of economic slowdown require a broad monetary policy.

* The baseline scenario requires steady Selic speed.

* The next steps in monetary policy depend on the balance between risks and economic activity.

* Attractiveness should be eliminated gradually if the inflation scenario or risk position is deteriorated.

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