Brazil’s central bank has increased interest rates by 100 basis points for the third time, raising the Selic rate to 14.25%. The decision was unanimous, in line with economist expectations, and signals a smaller hike for future meetings as the bank observes economic trends.
On Wednesday, Brazil’s central bank raised its interest rates by 100 basis points for the third consecutive time, maintaining previous guidance while signaling a smaller hike for the next meeting. This decision was made by the bank’s rate-setting committee, known as Copom, which unanimously decided to raise the Selic rate to 14.25%. This rate is the highest observed since 2016 and aligned with expectations set by all 37 economists surveyed by Reuters.
In summary, Brazil’s central bank continues to adjust interest rates amid signs of an economic slowdown. The recent increase of 100 basis points, bringing the Selic rate to 14.25%, reflects a cautious approach while anticipating a smaller hike in the forthcoming policy meeting. This decision showcases a balance between responding to current economic conditions and maintaining stability in the financial markets.
Original Source: www.tradingview.com
