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Board members led by Gabriel Galípolo left Brazil's benchmark rate at 13.75% and signaled patience. They said evidence is piling up that tight policy is biting the economy, yet demand is still pushing prices, so borrowing costs need to stay high. The committee noted five straight earlier cuts worth 1.25 percentage points, then detailed the new headwinds complicating their job. They pointed to pricier oil and electricity linked to Middle East turmoil, the El Niño pattern, Brazil shortening its typical workweek, and a weaker real driven by domestic policy doubts as sources of extra inflationary strain.
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