Brazil’s central bank held the country’s benchmark rate steady at 6.5% as was widely expected.
The bank’s monetary policy committee cited the trucker’s strike in May as making it harder to have a clear reading of how economic activity is doing, but it expects gradual improvement in the country’s economy.
In a statement after its meeting, the committee also highlighted the challenge posed by the global economic outlook, noting that higher rates in developed economies have reduced appetite toward emerging economies.
On inflation, the monetary policy officials expect more pressure on prices in the short term deriving from effects of the strike as well as price hikes in relative terms in other areas.