Monetary policy key to battle Brazil inflation -central bank

October 17, 2013

BRASILIA, Oct 17 (Reuters) - Inflation in Brazil remains stubbornly high but monetary policy should contribute to slow price increases through next year, according to the minutes of the central bank's most recent rate-setting meeting released on Thursday.

The central bank raised its benchmark Selic interest rate for the fifth straight time last week, keeping the pace of rate hikes steady and giving no signs it was ready to end monetary tightening to battle high inflation.

The bank repeated almost the same language from the previous minutes in a sign that policymakers could extend the rate hiking cycle.