Free Trial
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:
- BCB raised the SELIC rate by 100bps, alongside expectations
- Bank signaled tightening pace will slow from here
- Leaves door open to a 50 - 75bps hike in June
Full review here:
Matching expectations, the BCB raised rates by 100bps to 12.75% on Wednesday, but signalled that this month’s hike will not be the final rate rise of this tightening cycle. This extends the bank’s hawkish tilt into the coming meetings, despite suggesting in previous statements that a May hike could be the final step in their current campaign against inflation.
The accompanying policy statement removed previous references to the terminal rate of 12.75% being “sufficient for inflation convergence to levels around the target over the relevant horizon”, thereby opening the door for further rate rises this year as inflation expectations continue to run higher.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok