UPDATE 3-Brazil keeps interest rates steady to avoid deepening recession

miércoles 21 de octubre de 2015 19:36 GYT

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By Alonso Soto

BRASILIA Oct 21 (Reuters) - Brazil's central bank kept interest rates on hold on Wednesday, standing pat for a second straight meeting despite a jump in inflation expectations to avoid doing more harm to an economy mired in its worst recession in decades.

In a unanimous vote, the central bank's monetary policy committee, known as Copom, kept the benchmark Selic rate at 14.25 percent, a nine-year high and still the highest among the world's top 10 economies.

The decision not to raise rates will give a breather to President Dilma Rousseff, who is fighting for her political survival amid the country's worst economic and political crisis in 25 years.

But the central bank did not entirely rule out a rate hike in the future.

The bank reiterated that rates will remain on hold for some time, but removed reference to a self-imposed goal of bringing inflation back to the 4.5 percent official target in late 2016.

Instead the bank said it was focused "on the horizon relevant for monetary policy."

"Copom stresses that monetary policy will remain vigilant to achieve that objective," the bank added.   Continuación...