Brazil raises rates again amid fiscal woes
Central bank tightens policy by 100bp in unanimous decision as inflation continues to overshoot
The Central Bank of Brazil (BCB) on December 11 raised its policy rate by 100 basis points to 12.25% in a unanimous decision, as inflation continues to run above target and fiscal uncertainty looms.
The BCB’s monetary policy committee, known as Copom, said in a statement that inflation risks remained “tilted to the upside”. Year-on-year headline inflation was 4.87% in December, up from 4.76% the previous month. The central bank’s target is 3%.
Copom noted inflation expectations had increased
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