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COPOM Decision - 90 Minute Call

BRAZIL

MNI Brazil Central Bank Preview – March 16 - 2130 GMT/1730ET

  • The Copom are widely expected to hike the Selic rate by 100bps to 11.75% at their March meeting.
  • This action would be in line with prior BCB communication signalling a reduction of the 150bp hiking pace conducted at the previous three central bank meetings.
  • However, a renewal of inflationary pressures following the Ukraine conflict and associated commodity price spikes, has led some analysts to expect a more aggressive hike and a more prolonged tightening cycle.
  • The uncertain geopolitical backdrop reduces the likelihood of any pre-commitment on rates, with the BCB favouring future optionality.
  • The full preview with analyst views can be found here: https://marketnews.com/mni-bcb-preview-march-2022-reducing-the-hiking-pace

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