Brazil central bank warns on US tariffs, vows to anchor inflation expectations

BRASILIA (Reuters) -Brazil's central bank on Tuesday flagged caution over the impact of steeper U.S. trade tariffs, reaffirming its commitment to a policy stance aimed at lowering inflation expectations after signaling interest rates will remain on hold for long. In the minutes from its latest policy meeting, where policymakers paused an aggressive tightening cycle that had increased the benchmark rate by 450 basis points to a near 20-year high of 15%, the bank said that the 50% U.S. levies on goods from Brazil could have "significant" effects on specific sectors. Policymakers emphasized they are closely monitoring potential effects on the real economy and financial markets, and reinforced the central bank's cautious stance in a scenario of heightened uncertainty.