Free Trial

MNI INTERVIEW: BCB To Keep 50BP Pace in December -Goldenstein

Former head of the BCB’s open market operations department Sergio Goldenstein talks to MNI in an interview.

MNI (BRASILIA) - The Central Bank of Brazil is likely aiming to hike by 50 basis points twice more and to complete its tightening cycle with a 25bp increase to leave the Selic rate at 12.5%, the former head of its open market operations department Sergio Goldenstein told MNI, though he noted that the BCB could adjust its course depending on the fiscal scenario.

The BCB is already uncomfortably aware of the underperformance of the real versus its currency peers due to rising fiscal risks, Goldenstein, now chief strategist at Warren Rena, said in an interview after the central bank accelerated its tightening pace last Wednesday, increasing the official Selic rate by 50 basis points to 11.25% while stressing that its future decisions remain data-dependent.

Keep reading...Show less
393 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.

MNI (BRASILIA) - The Central Bank of Brazil is likely aiming to hike by 50 basis points twice more and to complete its tightening cycle with a 25bp increase to leave the Selic rate at 12.5%, the former head of its open market operations department Sergio Goldenstein told MNI, though he noted that the BCB could adjust its course depending on the fiscal scenario.

The BCB is already uncomfortably aware of the underperformance of the real versus its currency peers due to rising fiscal risks, Goldenstein, now chief strategist at Warren Rena, said in an interview after the central bank accelerated its tightening pace last Wednesday, increasing the official Selic rate by 50 basis points to 11.25% while stressing that its future decisions remain data-dependent.

Keep reading...Show less