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.

Europe Postpones Free Trade Agreement Negotiations with Australia

The European Union has postponed the next round of negotiations for a free trade agreement with Australia for a month. The move clearly is in retribution for the cancellation of the French $90 billion submarine contract.

Brazil Central Bank Raise Rates by 100bp to 6.25% To Rein In Inflation

Banco Central do Brasil​ hiked its benchmark interest rate by 100bp to 6.25% widening the Brazilian Real spread to the US Dollar. The Brazilian central bank said the underlying inflation is above the range compatible with meeting the inflation target. Earlier in the day the US Federal Reserve left rates unchanged.

US Senate Pass $1.9 trillion American Rescue Stimulus Plan

President Biden’s first major legislative initiative, the $1.9 trillion ‘American Rescue Plan’ stimulus bill passed a deeply divided Senate on Saturday in a vote 50-49. Democrats pushed through a loosely termed “pandemic aid plan” that includes an extraordinary increase in safety net spending.

Violent Hong Kong Pro-Democracy Protests Ahead of China National Day

Protesters and police continue to clash with no end in sight in Hong Kong. Protests turned violent over the weekend as the city braces for worse heading into China’s National Day this week. Riot police fired multiple volleys of tear gas while demonstrators hurled Molotov cocktails.