Brazil: Central Bank hikes SELIC rate for fourth time in five months
August 28, 2013
At its 28 August 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 9.00%, in a unanimous vote that was in line with market expectations. The decision comes amid growing concerns over inflationary pressures and follows an equivalent rate hike in July.
In the brief accompanying statement, which was unchanged from the previous month, policymakers stated that the policy rate increase should help steer inflation on a downward path and affirmed that this trend will continue next year.
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%.
Author: Carl Kelly, Economist