Brazil needs loose policy to safeguard recovery – IMF
Central bank held rates unchanged at record-low level on August 1
The Brazilian economy still requires an accommodative monetary policy to recover from the acute crisis it suffered between 2015 and 2016, the International Monetary Fund said on August 3.
In the context of Article IV consultations, the IMF’s directors “agreed that the current monetary policy stance is appropriate and should remain accommodative”. The monetary policy committee of the Central Bank of Brazil kept the key Selic rate at a record low of 6.5% on August 1.
Rate-setters argued that
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