Brazil Central Bank's June Decisions Will Be More Data Dependent, Says Governor

• Brazil's central bank lacks a clear view of the steps it may take at its June meeting, making it more dependent on what the data shows, governor Roberto Campos Neto said on Thursday, as uncertainty weighs on the scale of future rate cuts.

• Policymakers emphasized this week that uncertainties around the pace at which inflation will fall, both at home and abroad, had led them to revise their forward guidance, now anticipating another 50-basis-point cut at one upcoming meeting, in May, having previously flagged reductions on more than one occasion.

• "When we don't have such a clear visibility, it is understood that we become somewhat dependent on the scenario from here until then," Neto told a press conference on Thursday.

• The bank also revealed that "some members" of its rate-setting committee argued that if prospective uncertainty remains high in the future, a slower pace of monetary easing may prove appropriate.

• Economic policy director Diogo Guillen noted at the press conference that while some members drew attention to that point, that "didn't mean other members disagreed with everything that was said."

(Source: Reuters)