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MNI BCB Review – Aug 2022: September Hike Not Certain

MNI BCB Review - August 2022

MNI BCB Review - August 2022

Executive Summary

  • At the August 03 meeting, the BCB unanimously decided to increase the Selic rate by 50bps from 13.25% to 13.75%. This decision was in line with the majority of surveyed analysts and market pricing.
  • In terms of guidance, the Copom said “the Committee will evaluate the need for a residual adjustment, of lower magnitude, in its next meeting.”
  • Despite including the usual caveat that the committee will remain vigilant and “future policy steps could be adjusted to ensure the convergence of inflation towards its targets” the messaging is dovish as a largely expected cycle ending 25bp hike in September is now in question.

Click to view the full review: MNI BCB Review - August 2022.pdf

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