Free Trial

MNI BCB Review – June 2024: Unanimous Hold to Stabilise Markets

The Copom decided to keep the Selic rate unchanged at 10.50%. Importantly, the decision was adopted unanimously, in an attempt to stabilise domestic assets.

Executive Summary

  • At the June 19 meeting, the Copom decided to keep the Selic rate unchanged at 10.50%, in line with expectations.
  • Importantly, the decision was unanimous, following the split vote at the previous meeting in May, and this should help to stabilise domestic asset prices.
  • Looking ahead, the committee suggests that rate cuts will not resume until inflation is on a path to return to the 3% target over the policy horizon and inflation expectations are anchored.
  • Most analysts now expect the Copom to stay on hold for the rest of this year, before rate cuts resume in 2025.

Click to view the full review:

MNI BCB Review - June 2024.pdf

118 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Executive Summary

  • At the June 19 meeting, the Copom decided to keep the Selic rate unchanged at 10.50%, in line with expectations.
  • Importantly, the decision was unanimous, following the split vote at the previous meeting in May, and this should help to stabilise domestic asset prices.
  • Looking ahead, the committee suggests that rate cuts will not resume until inflation is on a path to return to the 3% target over the policy horizon and inflation expectations are anchored.
  • Most analysts now expect the Copom to stay on hold for the rest of this year, before rate cuts resume in 2025.

Click to view the full review:

MNI BCB Review - June 2024.pdf