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LatinNews Daily - 05 August 2021

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In brief: Another rate hike in Brazil

* The monetary policy committee (Copom) of Brazil’s central bank (BCB) has raised the benchmark interest rate (Selic) by 100 basis points to 5.25%. This is the fourth consecutive hike since Copom began raising interest rates in March in response to rising inflation, and represents the largest one-time increase in the Selic in 18 years. The Copom has indicated that it expects to raise the Selic further, up to 7% by the end of the year, in its baseline scenario where inflation is expected to close the year at 6.5%. Brazil’s annual inflation stood at 8.35% in June.