LatinNews Daily - 23 September 2021

* The monetary policy committee (Copom) in Brazil’s central bank (BCB) has unanimously agreed to increase the benchmark interest rate (Selic) by 100 basis points (bp) to 6.25%. This hike – the fifth consecutive one since Copom began raising interest rates in March – was widely expected by the markets as inflation has continued to rise in Brazil. Annual inflation stood at 9.68% in August, with inflation expected to close the year at 8.3% according to the BCB’s latest weekly survey of market analysts. Copom has indicated that another 100 bp rate hike is likely at its next meeting at the end of October, and said that it expects the Selic to stand at 8.25% by the end of the year and be raised further to 8.5% in 2022, before falling to 6.75% in 2023.

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