Brazil Central Bank Left Rates Steady for Fifth Month at 13.75%, Noted Resilient Inflation

Banco Central do Brasil​ kept its benchmark interest rate unchanged for the fifth consecutive meeting in February 2023, in line with market expectations. The decision however defied intense pressure from the new government of President Luiz Inacio Lula da Silva to reduce borrowing costs. Policy makers cited rising inflation expectations, with the annual rate at 5.79% in December 2022 which was recorded in double digits from September 2021 to July 2022. The Brazil decision came just hours after the US … Continue reading “Brazil Central Bank Left Rates Steady for Fifth Month at 13.75%, Noted Resilient Inflation”

Brazil Central Bank Left Rates Steady for Fourth Month at 13.75%, Cautious Due to Fiscal Risk

Banco Central do Brasil​ kept its benchmark interest rate unchanged for the fourth consecutive meeting in February 2023, in line with market expectations. The Central Bank last year having aggressively hiked its benchmark interest rate with twelve consecutive interest rate hikes since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. Policy makers are seeing signs of easing … Continue reading “Brazil Central Bank Left Rates Steady for Fourth Month at 13.75%, Cautious Due to Fiscal Risk”

Brazil Central Bank Pauses Rates at 13.75%, after Inflation Eased Below 10%

Banco Central do Brasil​ kept its benchmark interest rate unchanged after having aggressively hiked its benchmark interest rate by .50% to 13.75% last month. That move was the twelfth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. Policy makers are seeing early signs of easing inflation, with the annual rate below 10% … Continue reading “Brazil Central Bank Pauses Rates at 13.75%, after Inflation Eased Below 10%”

Brazil Central Bank Aggressively Raises Rates for Twelfth Consecutive Time, another 50bp to 13.75%, Signals More to Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by .50% to 13.75%. It was the twelth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. Brazil’s annual inflation stood at 11.39% in mid-July. The lending rate is now at its highest level since 2017. The bank’s monetary policy committee (Copom) said it expects to raise the Selic signaled in September again. … Continue reading “Brazil Central Bank Aggressively Raises Rates for Twelfth Consecutive Time, another 50bp to 13.75%, Signals More to Come”

Brazil Central Bank Aggressively Raises Rates for Eleventh Consecutive Time, another 50bp to 13.25%, Signals More to Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by .50% to 13.275%. It was the tenth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The impact is being felt, last week, Brazil’s 12-month inflation rate declined for the first time in 2022 in May, and retail sales increased in April at the slowest pace so far this year. The lending … Continue reading “Brazil Central Bank Aggressively Raises Rates for Eleventh Consecutive Time, another 50bp to 13.25%, Signals More to Come”

Brazil Central Bank Aggressively Raises Rates For Tenth Consecutive Time, Another 100bp to 12.75%, Signals More To Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.0% to 12.75%. It was the tenth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. The bank’s monetary policy committee (Copom) said it expects to raise the Selic by a smaller magnitude. Inflation is the issue of concern. The institution’s … Continue reading “Brazil Central Bank Aggressively Raises Rates For Tenth Consecutive Time, Another 100bp to 12.75%, Signals More To Come”

Brazil Central Bank Continues to Raise Rates Aggressively, Another 100bp to 11.75%, Signals More To Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.0% to 1`1.75%. It was the ninth consecutive interest rate hike since 2021 since the bank began its current tightening cycle early last year, when the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. The bank’s monetary policy committee (Copom) said it expects to raise the Selic by the same amount at its next meeting. Inflation is the … Continue reading “Brazil Central Bank Continues to Raise Rates Aggressively, Another 100bp to 11.75%, Signals More To Come”

Brazil Central Bank Continues to Raise Rates Aggressively, Another 150bp to 10.75% in February

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.5% to 10.75%. It was the eighth consecutive interest rate hike since 2021 and policymakers Inflation expectations for 2022 and 2023 collected by the Focus survey are around 5.4%, and 3.5%.  Last meeting the Brazilian Central Bank raised 150bp to 9.25% saying the underlying inflation is above the range compatible with meeting the inflation target. Highlights Global outlook environment remains less favorable.  More persistent inflation increases the chances … Continue reading “Brazil Central Bank Continues to Raise Rates Aggressively, Another 150bp to 10.75% in February”

Brazil Central Bank Continues to Raise Rates Aggressively, Another 150bp to 9.25% in December

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.5% to 9.25%. It was the seventh consecutive interest rate hike in 2021 and policymakers see another interest rate increase by the same margin at the next meeting.  Last meeting the Brazilian Central Bank raised 50bp to 7.75% saying the underlying inflation is above the range compatible with meeting the inflation target. Highlights Copom increases the Selic rate to 9.25% p.a. The committee said that accordingly to the … Continue reading “Brazil Central Bank Continues to Raise Rates Aggressively, Another 150bp to 9.25% in December”

Brazil Central Bank Raise Rates by 150bp to 7.75% To Rein In Inflation

Banco Central do Brasil​ aggressively hiked its benchmark interest rate by 1.5% to 7.75% (consensus was for a 1% hike to 7.25%) Last meeting the Brazilian Central Bank raised 100bp to 6.25% saying the underlying inflation is above the range compatible with meeting the inflation target.