"The Copom believes current economic conditions continue to recommend an unusually strong monetary stimulus, but recognizes that for reasons of prudential and financial stability, the remaining space for monetary policy stimulus, if any, should be small," the committee said.
During Copom's Oct. 27-28 meeting, the minutes of which were released Tuesday, members decided to keep the benchmark rate at 2 percent.
Copom raised the rate to 2 percent in August and decided in September to maintain the same rate.
The Copom's forecast sees inflation registering 3.1 percent in 2020, 3.1 percent in 2021 and 3.3 percent in 2022.
"This scenario assumes a trajectory for the (benchmark) rate that closes 2020 at 2 percent annually, rises to 2.75 percent annually in 2021 and 4.5 percent annually in 2022," said the committee.
According to the Copom, the strong recovery of some productive sectors abroad seems to be slowing down, in part due to a resurgence of the novel coronavirus (COVID-19) in several leading economies.
"However, moderation in the volatility of financial assets continues to create a relatively favorable environment for emerging economies," the committee said.
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