Brazil central bank says inflation remains demand-driven despite growing impact of rate hikes

BRASILIA, Aug. 11 (Reuters) - Brazil's central bank said on Tuesday that tight monetary policy is increasingly weighing on economic activity, but inflation remains fueled by demand, underscoring the need to keep interest rates restrictive.

Minutes of the bank's latest rate-setting meeting, which delivered a fourth straight 25-basis-point cut and lowered the Selic rate to 14.00%, also highlighted the need to monitor potential second-round inflation effects from supply shocks and act decisively if they emerge.