According to CoinMeta, the Central Bank of Brazil stated that there is increasing evidence of the impact of high interest rates on economic activity, but accelerating inflation and worsening expectations warrant a continued tight monetary policy. In the minutes of the decision-making meeting on November 4th, members of the board of directors led by Gabriel Galipolo wrote that the slowdown in economic activity could intensify. After five consecutive interest rate cuts totaling 1.25 percentage points, they maintained the benchmark interest rate at 13.75%. The committee assessed that there is gradually accumulating evidence of the transmission effect of tight monetary policy on economic activity. Although monetary policy has played a decisive role in the process of deflation, inflation remains demand-driven, thus requiring a continued tight monetary policy. According to the meeting minutes, economic activity is losing momentum after experiencing high borrowing costs for some time, while the labor market remains resilient despite some signs of cooling. At the same time, the latest data shows that both overall and core inflation have accelerated, inflation expectations have risen, and they are above the 3% target across all time periods.