The Central Bank, in its February monetary policy meeting, decided for the fourth month, keep its monetary policy interest rate (TPM) unchanged at 8.50% per year.
In a note, the monetary authority indicated that the rate of the permanent liquidity expansion facility (1-day Repos) will remain at 9.00% per year and the interest rate deposits (Overnight) will continue at 8.00% per year.
He explained that this decision is based on a thorough evaluation of the recent performance of the economyespecially inflation.
He added that the international prices of most raw materials, particularly oil and food, are moderating, while the global costs of container transport maintain their downward trend.
He argued that at the domestic level, inflationary dynamics continue to respond favorably to the monetary restriction program and to the subsidies implemented by the Government.
He indicated that, since the beginning of the monetary restriction program, there has been an increase in commercial bank interest rates, particularly passive interest rates. "In this way, a favorable rate differential has been maintained with respect to our main trading partners, such as the United States of America (USA), contributing to greater capital flows and foreign investment to the country, in addition to encouraging savings in national currency."maintains the Central Bank in its note.