The bill, sent to Congress revised the GDP growth. Other parameters, such as inflation and the Selic Rate (the economy's basic interest rate) have also been revised.
The committee said the move was driven by the adverse external environment and the indicators of economic activity and the domestic labor market, still more dynamic than expected.
The bank decided to halt the cycle of interest rate cuts due to slower-than-expected disinflation and the financial market's dampened inflation expectations.
The decision was motivated by the recent rise in the dollar and increased uncertainties. The 0.25 percentage-point drop, however, shows that the cuts are coming at a slower pace.
Central Bank indicated that it is likely to implement another 0.5 percentage point reduction at its next meeting in May. This raises the possibility that the committee will pause the cycle of rate cuts starting from June onwards.
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