Data release: 08/09/2022
The minutes from the Monetary Policy Committee Meeting signaled, in a more solid way than in the statement, that the tightening cycle is about to end. In addition, the Committee recognizes that, despite the relevant inflationary pressures on advanced economies, it can already be seen a normalization in supply chains and a cooling off in commodities prices.\
The BCB is now focusing on 1Q 2024 as the relevant horizon of monetary policy, as a way to look past the effects of the expected reversal of recent tax cuts in early 2023. Despite the fact that projected inflation is above the target for the period, the Brazilian central bank showed great willingness to end the cycle of monetary tightening.
