Brazilian central bank continues steep tightening cycle
MPC says it aims to slow pace of rate increases but warns fiscal policy is boosting inflation
The Central Bank of Brazil (BCB) continued the steep policy tightening it started in 2021, increasing its Selic rate by 150 basis points on February 2.
The BCB’s monetary policy committee unanimously decided to implement the third consecutive 150bp increase, which takes overall rate increases to 875bp since March 2021. Policy rates are now at 10.75% in Latin America’s largest economy.
The MPC said it intended to continue its monetary tightening policies, but at a slower pace. It warned
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