The Selic rose 0.5 percentage point, reaching 13.75% per year – a level that had not happened since 2016. The decision of the Monetary Policy Committee (Copom) was unanimous and was in line with general market expectations.
Despite confirming the analysts’ forecast, the Copom left the door open for another rise, of lesser magnitude, in September. The reading made by the market initially was that the BC would end the cycle of monetary tightening after the August meeting, but the Fed’s signals to continue with its more aggressive policy in the US changed the scenario in Brazil.
Although the imminence of the election is an impediment to the increase in interest rates in the country, some economists consider that the BC may raise the Selic by 25 basis points at the next meeting, taking the Selic to 14% per year.
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*Posted by Fabricio Julião, from CNN Brasil Business
Source: CNN Brasil
