LatinNews Daily - 26 June 2024

*Brazil’s central bank (BCB) has released the minutes from the latest meeting of its monetary policy committee (Copom) which concluded on 19 June and in which the committee halted the cycle of interest rate cuts. Last week the nine Copom members unanimously decided to maintain the benchmark interest rate (Selic) at 10.50%. The meeting minutes highlight uncertainties in the global and domestic economic outlook, such as interest rates in the US and the impact of the floods which have devasted Rio Grande do Sul state. The minutes did not give any hint of when the rate cut cycle might resume, which is likely to entail the persistence of tensions between the BCB and the government led by President Luiz Inácio Lula da Silva. Last week Lula ramped up his criticisms of BCB president Roberto Campos Neto. He sought to discredit Campos Neto’s integrity as a politically impartial technocrat, arguing that the central bank chief is an ally of major right-wing figures, such as the governor of São Paulo state and possible presidential contender in future elections, Tarcísio de Freitas. Earlier this month the governor held a meeting with Campos Neto which sparked media speculation that the BCB president might accept the role of finance minister in a potential right-wing administration led by De Freitas.