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Economic Research

More Tightening in the Pipeline in Brazil

Monetary Policy

Brazil’s monetary policy committee (COPOM) raised the benchmark SELIC rate by 50 basis points (bps) to 11.25% in the January 19 meeting, in line with RGE’s and market expectations. In the communiqué, the central bank said the decision was unanimous and without bias. Moreover, the COPOM pointed out to the “beginning of a process of adjusting the basic interest rate, whereby effects—added to those of the previously taken macro-prudential actions—will contribute to the convergence of inflation toward the target.”

Figure 1: Brazil’s Inflation and Monetary[...]

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