The rise in the Selic rate, announced by the Monetary Policy Committee (Copom) and in line with market expectations, is the ninth in a row, and marks a slowdown in the pace of increases compared to previous movements. It is worth remembering that the rate stood at 2% in March 2021.
A weekly central bank survey of private economists showed inflation expectations for 2022 rising to 6.5% from 5.7% the previous week.
Monetary policymakers are targeting 3.5% inflation this year, with a tolerance margin of 1.5 percentage points.
In this context, private forecasts also see the central bank extending its current rate hike cycle this year, taking the benchmark Selic rate to 12.75% by the end of the year., compared to 12.25% that was anticipated in last week’s survey.
It is worth remembering that on this day the United States Federal Reserve raised rates for the first time since 2018 to curb the highest inflation in 40 years in the world’s main power.
Source: Ambito
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