Decision of the Monetary Policy Committee of the Central Bank of Brazil (Copom):
Selic interest rate increased to 12.25%
- adjusted to date: 11.25%
- The expected increase was 12.0%
- The decision was unanimous. Due to a worse situation regarding the convergence of inflation, the committee expects further changes of the same size in the next two meetings. The pace of future interest rate changes and the size of an overall cycle will depend on inflation dynamics, expectations and projections, the yield gap, and the balance of risks. The committee has been keeping a close watch on how recent developments on the fiscal side are affecting monetary policy and the opinion of agents about the recent fiscal announcement has had a significant impact on prices. assets and expectations, especially the price of risk, inflation expectations and the exchange rate. uncertain and The set of local indicators of economic activity and the labor market continue to show strength, as seen in the recent GDP release, which suggests a further widening of the gap product. The global environment remains challenging, especially because of the economic outlook in the United States.
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Meanwhile, at the Féed:
This article was written by Eamonn Sheridan at www.forexlive.com.
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