Brazil: Central Bank hikes SELIC rate for the third time in a row
July 10, 2013
At its 10 July meeting, the Central Bank's Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to raise the benchmark SELIC interest rate by 50 basis points to 8.50%, in a unanimous vote that was in line with market expectations. The decision comes amid mounting price pressures, with inflation breaching the Bank's target ceiling in June, and follows two other rate hikes in April and May.
In the brief accompanying statement, virtually unchanged from the previous month, policymakers stated that the increase in the policy rate should put inflation on a downward path and assure that this trend will continue next year. The minutes, including details of the meeting, will be released on 18 July.
LatinFocus Consensus Forecast participants see the SELIC rate ending this year at 9.13%. For 2014, panellists see the SELIC rate rising to 9.16%.