Brazil’s central bank plans to raise its Selic rate to 14.25% on March 19, amid ongoing inflation and economic uncertainties. This increase represents the third consecutive hike of 100 basis points in the current tightening cycle, with expectations for further increases later in the year. Analysts predict the Selic may peak at 15.25% before gradually decreasing.
On March 19, Brazil’s central bank is anticipated to raise the benchmark interest rate to 14.25%, marking the highest level in nearly a decade. A Reuters poll indicated that the monetary policy committee, known as Copom, plans to implement a 100 basis point increase, continuing its current tightening cycle. Under the leadership of Governor Gabriel Galipolo, the Banco Central do Brasil (BCB) has adopted a stringent approach to address rising inflation.
In conclusion, Brazil’s central bank is set to increase the Selic rate to 14.25% in response to inflationary pressures, with analysts predicting a subsequent rise in May. The projected peak of the rate is expected at 15.25% by the third quarter, followed by a gradual decrease in the subsequent years. The outlook remains cautious as economic data presents mixed signals.
Original Source: money.usnews.com
