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Brazil central bank says much of rate hike impact yet to be felt

BY Reuters | ECONOMIC | 06/24/25 07:13 AM EDT

BRASILIA, June 24 (Reuters) - Brazil's central bank said on Tuesday that much of the impact from its "particularly quick and very firm" tightening cycle is yet to be felt, which is why it now foresees a pause in interest rate increases to assess those effects.

In the minutes of last week's decision, when it raised rates by 25 basis points to 15% and signaled a "very prolonged" pause ahead, policymakers said the economy remains resilient, complicating efforts to bring inflation back to target. (Reporting by Marcela Ayres; Editing by Gabriel Araujo)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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