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MNI BCB WATCH: Hawkish Copom Tone Hints At More 50BP Hikes

The Central Bank of Brazil (BCB) unanimously decided to raise its Selic rate by 50 basis points, to 11.25%.

MNI (BRASILIA) - The Central Bank of Brazil's decision to accelerate the pace of rate hikes Wednesday was accompanied by a hawkish message that suggests further increases of at least 50 basis points over its next few meetings -- perhaps even bigger moves if the inflation picture deteriorates further.

In raising the official Selic rate by a half point to 11.25%, the Monetary Policy Committee’s (Copom) also projected an inflation rate of 3.6% over its stated policy horizon, now set for the second quarter of 2026. This is above the 3% target and higher than the previous projection of 3.5% for the first quarter of 2026 -- which was the goal period for the September meeting.

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MNI (BRASILIA) - The Central Bank of Brazil's decision to accelerate the pace of rate hikes Wednesday was accompanied by a hawkish message that suggests further increases of at least 50 basis points over its next few meetings -- perhaps even bigger moves if the inflation picture deteriorates further.

In raising the official Selic rate by a half point to 11.25%, the Monetary Policy Committee’s (Copom) also projected an inflation rate of 3.6% over its stated policy horizon, now set for the second quarter of 2026. This is above the 3% target and higher than the previous projection of 3.5% for the first quarter of 2026 -- which was the goal period for the September meeting.

Keep reading...Show less