SAO PAULO, July 31 (Xinhua) -- Brazil's Central Bank decided Wednesday to keep the country's benchmark Selic interest rate steady at 15 percent, marking the end of seven consecutive hikes since September 2024.

The decision by the Monetary Policy Committee, composed of the bank's directors, was unanimous and aligned with broad market expectations.

In its statement, the committee reiterated the need for caution given the "high uncertainty" in the current economic environment. While signaling the conclusion of interest rate hikes, the committee indicated it would now monitor the cumulative effects of previous monetary adjustments to bring inflation back to target.

"The committee emphasizes that it will remain vigilant and that future monetary policy steps may be adjusted. It will not hesitate to resume the tightening cycle should it deem necessary," said the statement.

The statement noted that the Brazilian economy is currently showing resilience, with persistent labor market tightness. However, a widening fiscal deficit and exchange rate fluctuations remain potential risk factors, and inflation management targets have not yet been fully achieved. Furthermore, slowing global economic growth, tariff threats and commodity price fluctuations could lead to imported deflation.

On the impact of the latest U.S. tariffs on Brazilian products, the central bank will pay "particular attention" to the uncertainty that these tariffs may bring to the Brazilian economy, particularly their potential impact on prices and foreign trade. ■