The Brazilian central bank halted the record stretch of interest rate increases, refraining from boosting borrowing costs at the latest policy meeting that has ended yesterday. The real retained its strength, rising against the dollar today in spite of the news.
The Central Bank of Brazil left its target interest rate at 11 percent after nine consecutive rate hikes. The central bank struggles to tame rising inflation without endangering economic growth. It is still expected that the bank will be required to resume monetary tightening in a relatively near future, and such outlook helps the real to retain its appeal.
USD/BRL went down from 2.2380 to 2.2325 as of 14:36 GMT today.
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