Brazil Central Bank Signals Reduction in Pace of Rate Increases

(Bloomberg) -- Brazil's central bank signaled that it sees a reduction in the pace of interest rates adjustments after announcing Wednesday an increase of 150 basis points in the country's borrowing costs to 10.75%. 

“For its next steps, the Committee foresees as adequate, at this moment, a reduction in the pace of adjustment of the interest rate,” the central bank said in a statement after the decision. “This indication reflects the stage of the tightening cycle as its cumulative effects will manifest themselves over the relevant horizon.”

The central bank is undertaking one of the world's most aggressive monetary policy tightening, after boosting rates eight times from 2% a year ago. 

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