Brazil Central Bank increases benchmark interest rate to 7.75% per year

The Central Bank has not raised interest rates by 1.5 percentage points since 2002. The market was already forecasting a hike, but there were still doubts about the level that would be set, given the fiscal risks and the persistent increase in inflation.

RIO DE JANEIRO, BRAZIL - The Central Bank's Monetary Policy Committee (Copom) announced on Wednesday, 27, a more aggressive increase in the basic interest rate (SELIC), which goes from 6.25% to 7.75% per year, increasing 1.5 percentage points, reaching the highest level in four years.

The market was already forecasting a hike, but there were still doubts about the level that would be set, given the fiscal risks and the persistent increase in inflation. In general, estimates ranged from a one percentage point hike, signaled in the latest Copom minutes, to a 1.5 percentage points increase . . .

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