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For
the first time in recent years, the central bank said that the
government's fiscal position had become expansionary, instead of
neutral, complicating its efforts to fight inflation that
earlier this year surged to a 12-year high.
The bank's 2016 inflation forecast has fallen from its previous
estimate as the recession worsens, but remains above the 4.5
percent center of the official target range, according to the
minutes.
Last week, the bank's 8-member board, known as Copom, left its
benchmark Selic rate <BRCBMP=ECI> unchanged at 14.25 percent for
the sixth straight time.
The central bank's board will likely be replaced once Vice
President Michel Temer takes the presidency next week if the
Senate, as expected, suspends President Dilma Rousseff for
allegedly breaking budget laws. The change of the board and its
governor, Alexandre Tombini, will be done gradually, according
to Temer advisers.
(Reporting by Alonso Soto and Silvio Cascione; Editing by Chizu
Nomiyama and W Simon)
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