Brazil central bank

Reserve Bank of Australia Governor Michele Bullock emphasized the bank's readiness to raise interest rates if necessary to combat inflation, which is expected to remain above target until late 2025. After holding rates at 4.35%, Bullock acknowledged strong demand outpacing supply, particularly in service sectors. Meanwhile, Brazil's central bank has also indicated a potential interest rate hike amid rising inflation pressures, maintaining its Selic rate at 10.5% but warning that it will act if inflation does not converge with its target of 3%. The Brazilian central bank's committee highlighted the importance of vigilance regarding inflation expectations and noted that current economic conditions warrant caution. The recent increase in inflation to 4.45% has raised concerns about the government's fiscal strategies and the central bank's independence as President Lula plans to appoint new members to the monetary authority. Both central banks are navigating complex economic landscapes while balancing inflation control with growth and employment concerns.