Brazil Central Bank's decision to leave the SELIC rate stable at 14.25% in recent Copom meeting was as predicted. This decision was not unanimous however, with six members voted for it and two voted against it and were in favor of rising it to 14.75%.

These two voters who disagreed, indicate an increasing risk of additional rate hikes in this cycle, when there are expectations of continuous rise in medium-term inflation expectations.

The ECB would like to see the extent of inflation moderation in 2016, before taking additional rate hike decision in the current growth situation.

"The upside risk of monetary tightening continuing next year has risen. Simultaneously, the upside risk that interest rates could stay higher for longer has also increased given the rise in inflation expectations. At the moment, we do not expect any policy easing in 2016", says Societe Generale in a research note.