At its meeting on 20 July, the Central Bank Monetary Policy Committee (COPOM, Comite de Politica Monetaria) voted unanimously to raise the SELIC interest rate by 25 basis points to 12.50%. The decision was widely expected by the market and followed a similar move in June. An increase in interest rates aims to curb increasing inflationary pressures as well as to steer economic growth to a more sustainable path. Figures for mid-July consumer prices (IPCA-15), released shortly before the COPOM meeting on 20 July, showed that inflation continued to accelerate and stepped up to 6.8% (mid-June: 6.6%). Nevertheless, uncertainty regarding the Central Bank's next move has intensified, following removal of the ?for a sufficiently prolonged period? clause from its latest press release, which has been interpreted by some market participants as a signal that the Bank may refrain from tightening monetary policy in its August meeting. That said, a majority of Consensus Forecast participants anticipate another 25 bps hike in the coming meeting, after which they expect the Central Bank to end the tightening cycle.
Brazil Monetary Policy
COPOM continues to tighten the reins
July 20, 2011
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Brazil Economic News
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.
October 3, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in September, increasing from August’s 45.7 to 46.0.