June 20, 2024 09:25 GMT
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.
Central Bank of Brazil - ReviewHomepageLatAm Bank - ReviewEM Central Bank ReportsEM Central Bank ReviewEmerging Market News
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:
118 words