Searcher

Published on Thursday, March 5, 2015

Another 50bp adjustment of the SELIC rate

As in the previous two meetings, the Monetary Policy Committee (COPOM) decided to hike the SELIC rate by 50bp to 12.75% (vs. 7.25% two years ago). The remaining uncertainties about the government's ability to deliver a fiscal adjustment amid a turbulent political environment, the ongoing weakening of the Brazilian real (the exchange rate neared R$3 yesterday, accumulating a 32% depreciation in the last twelve months) and very high inflationary pressures (inflation is now above 7.0% and there are no perspectives of significant moderation ahead) are certainly behind the BCB's decision to continue to tight monetary conditions at a 50bp pace in spite of the increasing deceleration of domestic demand.

Documents to download

Geographies

Topics

Tags

New comment

Be the first to add a comment.

Load more

You may also be interested in