Weekly Report - 30 March 2023 (WR-23-13)

BRAZIL | Interest rate battle continues. On 22 March the monetary policy committee (Copom) of the central bank opted to hold the benchmark Selic interest rate unchanged at 13.75%. The decision had been expected but the accompanying press release showed the central bank to be in a hawkish mood saying it would keep rates high “until the disinflationary process consolidates”. Failing that the bank said it “would not hesitate to resume the tightening cycle”. Minutes from an earlier Copom meeting also warned of the “possible adoption of expansionary parafiscal policies”.