Bank of Brazil
Busy Session for Central Bank Watchers
September 18, 2025
On this Thursday, investors continued to react to yesterday’s interest rate reductions by the Federal Reserve (-25 basis points as expected), Canada (-25 bps as well as expected), Indonesia (an unexpected 25-bp cut). Brazil’s Selic rate was left unchanged for a second straight review at 15.0%, having been hiked 25 bps in June. Meantime, more […] More
Central Bank Interest Rate Changes in Czech Republic, Sweden and Brazil
November 7, 2024
There’s been a 25-basis point cut of the Czech National Bank’s two-week repo rate to 4.0%. It’s the eighth reduction since last December (four times by 50 bps and four times by 25 bps including the most recent three occasions). Consumer price inflation of 2.6% in September is still above the target of 2.0%, and […] More
Central Bank Rate Changes in Sweden, Norway, Turkey and Brazil
September 22, 2023
The Swedish Riksbank‘s executive board engineered a 25-basis point interest rate hike to 4.0% today, claiming that “inflationary pressures in the Swedish economy are still too high.” That compares with a zero percent rate at the start of the second quarter of 2022 and -0.50% in November 2018. Swedish inflation of 7.5% is far […] More
A Parade of Central Bank Interest Rate Decision and A Shift Away from Risky Assets
September 21, 2023
Sovereign debt has been well-bid in the wake of the Fed’s message not to expect interest rates to fall much in 2024. Many other central banks have chimed in with hawkish messages today. Ten-year sovereign debt yields rose overnight by nine basis points in Italy, seven basis points in the U.K., six bps in the […] More
More Central Bank Policy Rates Get Raised 10-Year Sovereign Debt Yields Drop
February 2, 2023
Officials at the European Central Bank and Bank of England raised their policy interest rate by 50 basis points to their highest levels since 2008. The size of those increases matched expectations. The policy rates of the Hong Kong and Macao Monetary Authorities matched the Fed’s 25-basis point increase. Brazil’s Selic interest rate was kept […] More
Considerable Central Bank News and a Whole Lot More
September 23, 2021
The takeaways from Fed Chairman Powell’s press conference yesterday are that a tapering of Fed bond purchases could begin as soon as right after the next scheduled FOMC meeting and should be drawn down to zero by mid-2022, plus the lift-off date for the fed funds target could occur next year rather than in 2023. […] More
Dollar Dips as U.S. Covid Cases Swell and Trade Deficit Climbs to Record High in June
August 5, 2021
U.S. Covid-19 cases rose to 96.0k yesterday from 92.6k on Tuesday. The United States goods and services trade deficit of $75.749 in June was a record monthly high. The first-half deficit of $428.6 billion was 46% greater than in the first half of 2020. The Bank of England’s Monetary Policy Committee again voted unanimously to […] More
Dollar Down on a Perfect Storm of Tensions Fraught with Uncertainty
June 20, 2019
The dollar lost 0.6-0.9% overnight against the euro, Swiss franc, loonie, yuan, kiwi, Australian dollar and Mexican peso. The greenback also has fallen 0.4% relative to the yen and 0.3% vis-a-vis sterling. The list of unknowns keeps lengthening. Iran shot down a U.S. surveillance drone, seemingly bringing another Middle East war closer. From Fed Chairman […] More
Heavy Flow of Information Continues
September 3, 2015
The Bank of Brazil ended a 7-meeting streak of rate tightening, as risks of deepening recession outweigh danger of vicious cycle of currency depreciation and rising inflation. The Selic Rate was left at 14.25%, its level after 325 basis points of tightening between October 2014 and July 2015. The Swedish Riksbank likewise left monetary policy […] More
Bank of Brazil Elects Not to Hike 14.25% Selic Interest Rate Further
September 2, 2015
For seven straight meetings of Copom, the policy committee, between October 2014 and July 2015, the Selic Rate had been increased, bringing such up 325 basis points in all to 14.25% in order to counter accelerating inflation, which now stands exceeds 9.5% and the 3-5% target. Monetary policy hasn’t had much cooperation from fiscal policy. […] More
