50-Basis Point Brazilian Rate Hike Matches Expectations

March 2, 2011

COPOM, the Bank of Brazil’s policy-making committee, increased its Selic rate to 11.75% from 11.25%, bringing cumulative tightening over the past eleven months to 300 basis points in five steps.  Such reverses 60% of the easing done during the first seven months of 2009, which also was implemented in five steps.  A brief statement from […] More

Rate Raising Comes to Colombia Finally

February 25, 2011

The Colombian interest rate was raised today by 25 basis points in the first advance since July 2008.  The benchmark central bank rate had been 3.0% since a 50-basis point cut on April 30, 2010 that culminated and 8-step, 700-basis point reduction beginning in December 2008.  600 bps of that drop was done in 2009.  […] More

Brazilian Selic Interest Rate Maintained at 10.75%

December 9, 2010

COPOM, the interest-rate setting committee at the Bank of Brazil, failed to hike its benchmark interest rate further at the third consecutive meeting, matching decions made October 20 and August 31.  Before those meetings, three consecutive increases totaling 200 basis points were implemented on April 28, June 9, and July 21.  The next announcement is […] More

Tighter Reserve Requirements in Brazil

December 3, 2010

COPOM, Brazil’s monetary policy committee, meets next Tuesday-Wednesday, having already lifted the benchmark Selic rate by 75 basis points each last April 28 and June 9 followed by 50 bps on July 21 but not at  at the subsequent meetings on August 31 and October 20.  In advance of next week’s meeting, reserve requirements were […] More

Peripheral Bond Premiums Sharply Lower; It’s Jobs Data Day in the U.S.

December 3, 2010

The dollar is mostly lower, with losses of 0.5% against the Australian dollar, 0.3% versus the yen and sterling, and 0.2% against the Canadian dollar, kiwi, and euro.  Dollar-Swiss is an exception, rising 0.1%, and the yuan is steady against the greenback. In the Pacific Rim, equities rose 0.7% in the Philippines, 0.5% in Pakistan […] More

Brazilian Key Interest Rate Left Unchanged at 10.75%

October 20, 2010

Brazil’s monetary policy committee, COPOM, retained a 10.75% Selic rate, matching analyst expectations and the result of its prior meeting on August 31.  Previously, the Selic rate was lifted by 75 basis points on April 28, another 75 bps on June 9, and 50 bps on July 21.  The Central Bank of Brazil targets inflation […] More

A Mixed Bag of U.S., Canadian and Brazilian Data Releases Today

September 14, 2010

CANADA Labor productivity fell 0.8% last quarter, the most in over 2-1/2 years and the first drop in three quarters.  Canadian productivity growth has been no match for its U.S. counterpart, averaging 0.6% per annum in the five years to 2009 versus a 1.7% per annum pace of rise in U.S. productivity over that span.  […] More

Brazilian Selic Rate Left at 10.75%

September 1, 2010

The interest rate policy board, Copom, at the Banco Central do Brasil paused the tightening of its key interest rate as analysts anticipated.  Hikes implemented of 75 bps on April 28, another 75 bps on June 9 and 50 bps on July 21 had reversed two-fifths of the cuts between January 2009 and July 2009.  […] More

Smaller-Than-Expected Brazilian Central Bank Rate Hike

July 21, 2010

Policymakers at the Central Bank of Brazil, known as COPOM, lifted their key Selic rate for a third time but by a lesser 50 basis points to 10.75%.  Analysts were predicting a move of 75 basis points like those announced on April 28 and June 9.  Nonetheless, the cumulative advance of 200 basis points thus […] More

Brazilian Selic Rate Lifted for First Time Since September 2008

April 28, 2010

COPOM, the monetary policy committee at the Central Bank of Brazil, raised its key Selic interest rate from a record low of 8.75% to 9.5%.  Analysts were unanimous in projecting an increase but split over whether the advance would be by 50, 75, or 100 basis points. Brazilian CPI inflation has accelerated from 4.3% at […] More