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The committee, accordingly, continues to see a risk of heightened inflation pressures.
Since then, new data have heightened inflation worries and seemed to validate the bank's hawkish views.
Those efforts to liberalize the economy spurred industrial growth and foreign investment, but they also resulted in rising budget and trade deficits and heightened inflation.
Members unanimously agreed that future risks to the economy were "weighted mainly toward conditions that may generate heightened inflation pressures in the foreseeable future".
Nonetheless, it continued, "the risks continue to be weighted mainly toward conditions that may generate heightened inflation pressures in the foreseeable future".
"They are preparing the ground to be the first central bank to take action against the heightened inflation risk," he said.
Similar(33)
That, they feared, would erode the Fed's credibility and heighten inflation expectations.
It is damaging not only because it reduces the value of aid by 15-20% [ 6], but it can also increase fiscal and monetary instability in recipient countries, which can heighten inflation [ 7].
Concerns over Brazil have been heightened by inflation rising well above 6% in recent months, and doubts about the central bank's willingness and ability to contain it.
This outflow drains hard currency reserves, heightens inflation, reduces tax collection, cancels investment, cripples foreign aid, undermines free trade, worsens poverty, and forestalls sustainable growth for billions of people.
Weak underlying inflation and heightened political risk made an extension inevitable, it said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com