Core Viewpoint - Brazil's central bank has entered a "new stage" of monetary policy, opting to keep interest rates unchanged at 15% while assessing if this level is sufficient to achieve the 3% inflation target [1][2]. Monetary Policy - The rate-setting committee acknowledges that the current economic scenario aligns with its monetary policy stance, indicating a gradual moderation in growth [2]. - The central bank halted an aggressive tightening cycle in July, which had increased the Selic rate by 450 basis points since September 2024 [3]. - Policymakers remain vigilant, particularly monitoring services inflation, and have noted a more favorable inflation dynamic compared to earlier this year, although concerns about deanchored inflation expectations persist [3]. Inflation Data - Brazil's 12-month inflation rate reached 5.13% in August, while the central bank's target is set at 3%, with a permissible range of plus or minus 1.5 percentage points [4]. Criticism of Monetary Policy - Finance Minister Fernando Haddad criticized the central bank's high borrowing costs, stating he sees "no justification" for maintaining elevated interest rates and believes there is room for rates to decrease [5].