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MNI BCB WATCH: BCB Seen Hiking the Selic Rate By 25BP

The Central Bank of Brazil announces its monetary policy decision on Wednesday.

MNI (BRASILIA) - The Central Bank of Brazil is widely expected to hike its official Selic rate by 25 basis points to 10.75% Wednesday, amid concerns over a stronger-than-expected economy, rising inflation expectations, and currency depreciation. 

Second quarter GDP growth of 1.4% pointed to an economy growing faster than potential, and members of the Monetary Policy Committee, Copom, have adopted a hawkish tone which analysts say signals the start of a hiking cycle. The real has depreciated by about 12% against the dollar so far year, falling to as low as 5.75 to the greenback in July amid concerns over government spending.

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MNI (BRASILIA) - The Central Bank of Brazil is widely expected to hike its official Selic rate by 25 basis points to 10.75% Wednesday, amid concerns over a stronger-than-expected economy, rising inflation expectations, and currency depreciation. 

Second quarter GDP growth of 1.4% pointed to an economy growing faster than potential, and members of the Monetary Policy Committee, Copom, have adopted a hawkish tone which analysts say signals the start of a hiking cycle. The real has depreciated by about 12% against the dollar so far year, falling to as low as 5.75 to the greenback in July amid concerns over government spending.

Keep reading...Show less