Central Bank of Brazil
Comparing the Central Bank Interest Rate Paths of the United States, Brazil, U.K., Iceland,Poland and Czech Republic
May 5, 2022
All six of the central banks in this comparative study had interest rate hikes announced either today or yesterday. In none of the cases was the increase the first one of the current cycles. All these tightening cycles represent responses to accelerating inflation caused in large part by external factors like the pandemic, policy responses […] More
Following the Fed’s Lead to an Extent
May 5, 2022
Wednesday saw a post-FOMC rally in U.S. equities and commodity prices but a drop in the dollar and 10-year Treasury yield. The 50-basis point interest rate hike and the details regarding Fed balance sheet reduction were aligned with market expectations, but Powell’s press conference was more dovish than expected, especially his quelling of the possibility […] More
Central Bank of Brazil Tightens for a Ninth Time
March 17, 2022
A full percentage point increase in the Central Bank of Brazil‘s Selic rate to 11.75% matched what analysts were expected. The move was agreed unanimously, and a released statement foreshadows a similarly-sized rate hike at the next policy review: “For its next meeting, the Committee foresees another adjustment of the same magnitude. The Copom emphasizes […] More
Inflation and Russian Invasion of Ukraine Casting Longer Shadows
March 17, 2022
Equities behaved in a widely diverse way overnight after the Fed enacted the first of many rate hikes. Share prices closed up by 7.0% in Hong Kong, 3.5% in Japan, 3.0% in Taiwan, 1.8% in India, 1.7% in China, and 1.1% in Australia. But stock markets so far are down this Thursday by 1.0% in […] More
Central Bank of Brazil
February 3, 2022
Officials at the Central Bank of Brazil authorized a 150-basis point hike of their Selic interest rate to 10.75%. From a pandemic low of 2.0% prior to March 2021, there have been eight increases totaling 875 basis points. Brazilian CPI inflation accelerated from 4.6% in January 2021 to just over 10% currently and way above […] More
Omicron, Central Banks, ISIS, Metaverse, OPEC, Russia, Inflation and January PMIs Vying for Market’s Attention
February 3, 2022
The top leader of ISIS and his family have died after a U.S.-led raid in Syria. Geopolitical tensions between the U.S. and Russia remain very high. A total of 3,623 Covid-19 deaths yesterday in the United States were the greatest single-day total in a year. Omicron affected numerous service-sector and composite purchasing manager surveys reported […] More
Brazilian Selic Rate Began 2021 at 2.0% and Ending the Year at 9.25%
December 8, 2021
The Copom committee at the Central Bank of Brazil that decides monetary policy settings unanimously voted to hike its Selic interest rate by 150 basis points to 9.25%, matching the previous advance in October that had been the largest since 2002. Rate cuts of 250 basis points in 2020 have been far exceeded in 2021 […] More
Brazilian Selic Rate Lifted to 5.25% from 4.25%
August 5, 2021
A fourth central bank interest rate hike this year has been engineered in Brazil, and the increase of a full percentage point exceeded expectations. At 5.25%, the Bank of Brazil’s Selic Rate is now 325 basis points above its level at the beginning of March. Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution […] More
Parade of Other Central Banks
June 17, 2021
Markets had reacted late Wednesday to the Federal Reserve‘s signal that its initial interest rate hike is likely to occur during 2023, rather than 2024 as implied previously. Several other central banks had scheduled policy reviews whose results were learned subsequently. At the time of the opening of U.S. stock market trading on Thursday, the […] More
Lower Dollar
May 6, 2021
The dollar settled back 0.4% on a weighted basis and against the euro overnight. The dollar also lost 0.5% relative to the Swiss franc, 0.3% versus the loonie, and 0.1% relative to the New Zealand and Australian currencies. The dollar alternatively edged 0.1% higher against the peso and sterling and held steady on balance versus […] More
