Central Bank of Brazil

No Deals and Many More Covid Cases… Also Several Central Bank Meetings

December 10, 2020

Talks last night between British Prime Minister Johnson and EU Commission President Von Der Leyden failed to achieve a trade deal. The U.S. senate grinch, Mitch McConnell, put the brakes on efforts to nail down a fiscal stimulus. U.S. Covid deaths yesterday nudged above 3k, and that pace has accelerated to 3,340 over the last […] More

Dollar Rebound Continues While Equities Remain Exposed

October 29, 2020

There’s much to digest today: monetary policy reviews in Japan and Euroland, a first glimpse of U.S. 3Q growth, Covid lockdowns in France and Germany, and latest U.S. political developments as election campaign enters final days. The dollar strengthened overnight by another 1.4% versus the peso, 1.3% against the Australian dollar, 0.8% relative to the […] More

Equities Fall Even as Central Banks Commit to Maintaining Low Interest Rates

September 17, 2020

Share prices in Asia closed down 1.6% in Hong Kong, 1.2% in South Korea, 0.8% in Taiwan and India, 0.7% in Japan and 0.4% in China and Indonesia. Equities in Europe so far today have dropped 1.2% in Italy, 0.9% in France, 0.8% in Germany and Spain, and 0.5% in the U.K.. The dollar recovered […] More

Central Bank of Brazil Cuts Interest Rate Further as Expected

August 6, 2020

The Brazilian Selic interest rate was sliced another 25 basis points as expected to 2.0%. This was its fifth reduction of 2020, following cuts of 25 basis points in February, 50 bps in March, and 75 basis points each in May and June. The rate has been lowered progressively since the final quarter of 2016 […] More

No U.S. Fiscal Package Yet as New Jobless Claims Exceed 1 Million for 20th Consecutive Week

August 6, 2020

Congressional talks on an additional fiscal stimulus reportedly remain far apart. The hope has been to secure agreement by tomorrow. Global Covid-19 cases just rose above the 19 million mark, and the U.S. total is closing in fast upon 5 million confirmed infections. Although more than 200k less than forecast, new U.S. jobless insurance claims […] More

Central Bank of Brazil Authorizes 75-Basis Point Rate Cut

June 18, 2020

As was expected, Brazil’s monetary policy committee known as Copom cut its Selic interest rate by another 75 basis points to 2.25% and matching the reduction made in May. A pair of 25-basis point reductions were done earlier in February and March. In a released statement from the Central Bank of Brazil, however, officials noted […] More

More Concern than Hope in Thursday’s Marketplace

June 18, 2020

It’s been a busy day for central bank watchers, as monetary policy was reviewed in the U.K., Norway, Switzerland, Brazil, Taiwan, and Indonesia. Released statements and some new data adhere to the baseline view that economic activity contracted even more sharply in the second quarter than the first but that the rate of slide began […] More

Central Bank of Brazil Selic Rate Reduced by 75 Basis Points

May 7, 2020

Brazil’s Selic interest rate was cut yesterday by 75 basis points to 3.0%. Copom, the Central Bank of Brazil’s monetary policy committee, has been escalating the incremental size of its reductions, having cut the Selic rate by 25 basis points in February and 50 bps in March. According to a released statement, two of nine […] More

A Greater-than-Expected 50-Basis Point Selic Rate Cut in Brazil

March 18, 2020

Copom, the interest rate policy-making committee at the Central Bank of Brazil had previously cut its Selic rate five times since last July. While the first four reductions were by 50 basis points each, the increment was halved to 25 basis points at last month’s review, and this had analysts anticipating another 25-basis point cut […] More

A Fifth Bank of Brazil Rate Cut Since July

February 5, 2020

Brazil’s Selic Rate has been reduced to 4.25% from 4.5%, but a released statement calls for a pause in the easing that totals 225 basis points since mid-2019. The Copom judges that the current stage of the business cycle recommends caution in the conduct of monetary policy. In light of the lagged effects of the […] More

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