Brazil central bank not inclined to raise rates immediately, warns of fiscal risks: minutes

BRASILIA: Brazil's central bank does not expect to raise interest rates in the immediate future due to an unusually high degree of economic uncertainty, minutes from its last policy meeting showed on Tuesday, although fiscal risks could prompt it to tighten policy faster than its baseline scenario suggests.

The minutes of the Jan. 19-20 meeting of the rate-setting committee, known as Copom, also showed that policymakers thought the COVID-19 pandemic and the end of emergency cash transfers could slow or even temporarily reverse an economic recovery.