Brazil Central Bank indicates possibility of 1% SELIC rate hike at next meeting

The Copom meeting minutes show “transparency” in its communications that more flexibility to adjust policy at a potentially faster rate was required.

RIO DE JANEIRO, BRAZIL - Brazil’s Central Bank discussed raising interest rates last week by more than 75 basis points, minutes from its last policy meeting showed on Tuesday, raising the chances of a more aggressive hike at its next meeting to keep inflation in check.

The minutes of the June 15-16 meeting, where the bank’s rate-setting committee known as Copom raised the SELIC rate to 4.25%, showed policymakers believe a full normalization of policy is now appropriate, shifting up a gear from a more cautious “partial” approach in recent meetings.

With inflationary pressures “more intense . . .

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