Jan 17, 2011
| Last Updated
Monetary Policy
The central bank will likely hike the benchmark SELIC rate by 50 basis points (bps) to 11.25% in the January 19 meeting, in line with the consensus. Latest developments suggest that economic activity remained strong at the end of 2010—growing above potential—while inflation expectations remain well above the mid-point of the target range and core inflation is under upward pressures. In our view, the balance of risks is clearly tilted toward inflation, given an inflationary external and domestic backdrop. Although last year’s monetary tightening, adjustments in[...]
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