The monetary authority raised a percentage point the reference interest rate. Within the framework of fears for the fiscal deficit, a new adjustment is estimated in March.
The Central Bank of Brazil (BCB) uploaded its reference interest rate to 13.25%on Wednesday, at its first meeting under the presidency of Gabriel Galipolodesignated by the Government in a context of inflationary pressures.
As planned in December, the Monetary Policy Committee (COPOM) announced an increase in a percentage point of the SERIC rate, the Fourth consecutive rise since an adjustment cycle began in September.
The rate will be expected to reach 14.25% in March
A hot economy and investors anxiety for the fiscal deficit pressed on prices in 2024. Although in recent months there was more calm, From the Brazilian monetary authority they undertake to take the necessary measures to bring inflation to their 3% goal and for that they intend to take the rate to 14.25% for March.
Although the president Lula da Silva He has tried to appease the fears for the fiscal deficit, a package of cuts of the expenditure revealed in November was well below what the market expected.
In front of this scenario, The Brazilian real suffered an important devaluation In the recent past until falling to a historical minimum against the dollar in December, shooting import costs.
In 2024 the currency depreciated 27% against the dollar. On the contrary, the Argentine weight crossed an inverse process, of strong appreciation within the framework of the governmental objective of putting a roof to inflation.
By de, The bilateral exchange rate with Brazil is at least since 2015while the multilateral exchange rate, which compares the Argentine peso with all the coins of the main commercial partners, is already at lower levels than at the end of the administration of Alberto Fernández and is similar to that of the purposes of convertibility.
Source: Ambito
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