LatinNews Daily - 09 February 2022

In brief: Brazil’s BCB expects over target inflation

* The monetary policy committee (Copom) in Brazil’s central bank (BCB) has released the minutes from its latest meeting, during which it unanimously decided to raise the benchmark interest rate (Selic) to 10.75%. In the minutes, the Copom notes that inflation is expected to close 2022 at 5.4%, above target (the BCB’s target range is set at 3.5% +/- 1.5). The Copom cited risks from “fiscal policies that imply an additional boost in aggregate demand or worsen the future fiscal trajectory” as possibly worsening the inflation scenario. Although the Copom is expected to keep pursuing its cycle of monetary tightening, it gave no indication as to the size of the next rate hike, citing uncertainty surrounding the price of important assets and commodities

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