Bank of Brazil

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

Bank of Brazil Implements another Rate Increase as Expected

October 9, 2013

The Brazilian Selic rate, which was cut by 150 basis points in the second half of 2011 and 375 bps in 2012, was lifted in each of the past meetings of Copom, the Bank of Brazil’s policymaking committee.  The first move was by 25 bps, while the last four including today’s amounted to 50 bps […] More

Brazilian Monetary Policy Possibly Moves Closer to a Trend Reversal

March 6, 2013

Brazilian monetary policy is decided by Copom, a committee at the central bank, and such has been in easing mode since a 50-basis point Selic rate cut to 12.0% in August 2011.  Nine more reductions ensued, the most recent of which was a 25-bp cut last October.  That move left the key interest rate at […] More

Brazilian Interest Rate Cut

May 31, 2012

Brazil’s monetary policy committee, COPOM, reduced its key Selic interest rate to 8.5% from 9.0% late Wednesday.  Such was the seventh reduction in an easing cycle begun nine months ago from a peak of 12.5%.  These seven cuts totaling 400 basis points offset eight increases totaling 375 bps between April 2010 and July 2011, and […] More

Brazil Gets a Fourth Rate Cut

January 18, 2012

Copom, the policymaking committee of the Bank of Brazil, cut the Selic central bank interest rate by 50 basis points to 10.5%.  This unanimously decided move follows similar half-percentage point reductions announced last August 31, October 19, and November 30.  Slightly more than half of the 375 basis points of tightening from April 2010 through […] More

Brazilian Central Bank Interest Rate Hike

July 20, 2011

The Bank of Brazil’s monetary policy committee, COPOM, sanctioned a fourth consecutive and seventh overall Selic rate hike, the size of which was an as-expected 25 basis points to 12.50%.  The cumulative increase in this gradual and prolonged cycle of increases stands at 375 basis points.  The first two tightenings in June and July of […] More