RIO DE JANEIRO, BRAZIL - Concern with rising prices was the main reason for COPOM to raise the Selic rate higher than expected, reaching 2.75% per year and indicating that it may make further adjustments. The role of the Central Bank is to guarantee the stability of the currency, and one of the paths is stable inflation.
The Central Bank, however, says that at the moment there is an "inflationary surprise" and has revised the IPCA inflation rate forecast from 3.4% in the last report to 5% in 2021. Depreciation of the real and the rise of several commodities . . .