Brazil’s central bank raised interest rates by 100 basis points to 14.25% for the third consecutive time, signaling a smaller increase in the future as it monitors economic slowdown indicators. This unanimous decision aligns with prior expectations of economists.
On Wednesday, Brazil’s central bank elevated interest rates by 100 basis points for the third time in succession. This decision aligns with prior guidance and the central bank has indicated a potential for a smaller increase in the subsequent policy meeting as it observes emerging signals of an economic downturn.
The bank’s monetary policy committee, known as Copom, raised the Selic rate to 14.25%, a figure not reached since 2016. This unanimous decision was anticipated, reflecting the consensus of all 37 economists surveyed by Reuters.
In summary, Brazil’s central bank has implemented a significant rate hike, maintaining its previous strategy while hinting at moderation in future adjustments. The move to raise the Selic rate to 14.25% amid economic observations indicates a cautious approach in managing inflation and economic stability.
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