Brazilian Central Bank Rate Hike
June 17, 2021
The Central Bank of Brazil’s Selic interest rate as expected was raised by 75 basis points to 4.25%. That move had been expected and follows similar incremental moves undertaken in March and May. A released statement moreover signals another 75 basis point hike at the committee’s next scheduled review and a likely rate level of 6.25% by the end of this year and 6.5% in 2022 as officials restore a neutral policy stance. Inflation has spiked close to 6%, which is higher than officials were expecting, and recovery risks have diminished.
Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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