SAO PAULO, Feb 4 (Reuters) - Recovering demand in Brazil could push prices higher, central bank policy-makers said, adding that they are prepared to change their stance if needed.
In minutes of their Jan. 26-27 rate-setting meeting, which were released on Thursday, the policy-makers observed economic stimuli were chipping away at the remaining slack in the economy.
They pledged to watch over short-term inflationary pressures to prevent those from expanding into the longer-term, as well.
At last week's meeting policymakers kept Brazil's benchmark Selic rate at a record-low 8.75 percent, but substantially modified the wording of the policy statement accompanying that decision.
Last week's statement noted that the central bank would watch the evolution of Brazil's macroeconomic scenario to decide on next steps.
Similarities between that statement and others issued in January and March 2008, which preceded the last round of monetary tightening, prompted some analysts to speculate that a rake hike might not come this year until April.
(Reporting by Guillermo Parra-Bernal and Todd Benson; Writing by Luciana Lopez, editing by W Simon ) Keywords: BRAZIL ECONOMY/RATES (luciana.f.lopez@thomsonreuters.com; Reuters Messaging: luciana.f.lopez.thomsonreuters.com@reuters.net; Tel: +5511-5644-7756) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In minutes of their Jan. 26-27 rate-setting meeting, which were released on Thursday, the policy-makers observed economic stimuli were chipping away at the remaining slack in the economy.
They pledged to watch over short-term inflationary pressures to prevent those from expanding into the longer-term, as well.
At last week's meeting policymakers kept Brazil's benchmark Selic rate at a record-low 8.75 percent, but substantially modified the wording of the policy statement accompanying that decision.
Last week's statement noted that the central bank would watch the evolution of Brazil's macroeconomic scenario to decide on next steps.
Similarities between that statement and others issued in January and March 2008, which preceded the last round of monetary tightening, prompted some analysts to speculate that a rake hike might not come this year until April.
(Reporting by Guillermo Parra-Bernal and Todd Benson; Writing by Luciana Lopez, editing by W Simon ) Keywords: BRAZIL ECONOMY/RATES (luciana.f.lopez@thomsonreuters.com; Reuters Messaging: luciana.f.lopez.thomsonreuters.com@reuters.net; Tel: +5511-5644-7756) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.