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  • The BCB will publish their minutes from the June 16 meeting at 1200BST/0700ET.
  • As a reminder the Copom raised their Selic rate by 75 bps to 4.25% in a unanimous decision.
  • The post-meeting statement provided a clear hawkish shift. By removing the word 'partial', markets have been given a clear signal that the committee "foresees the continuation of the monetary normalization process".
  • Additionally, the Copom have indicated that they predict another adjustment of the same magnitude (75 bps hike) at the August meeting. In an extra hawkish twist, however, the committee added and important caveat that a further deterioration in the expectations for inflation may prompt a "quicker reduction" of monetary policy stimulus.
  • Our full review of the meeting with analyst views can be accessed here: https://marketnews.com/mni-bcb-review-june-2021-hawkish-shift-provides-future-flexibility-2653413611