Brazil: COPOM raises rates in line with expectations
June 8, 2011
At its meeting on 8 June, the Central Bank Monetary Policy Committee (COPOM, Comite de Politica Monetaria) voted unanimously to raise the SELIC interest rate by 25 basis points to 12.25%. The decision was widely expected by the market, as it followed a similar move at its previous meeting in April. The COPOM maintained its position that adjustments to monetary conditions ?for a sufficiently long period remain the best strategy to ensure the convergence of inflation to the target in 2012.? Accordingly, market participants expect at least another 25 basis points hike before the end of the tightening cycle.