Selic Rate: 100bps Up, Another 100 To Go

June 2008 | Economic Analysis

The Banco Central do Brasil continues to raise its benchmark Selic rate in an effort to address structural inflationary pressures and anchor rising inflation expectations. With increasingly precarious inflation data coming from Brazil, we expect the bank's tightening cycle to be longer than previously assumed. We now forecast an additional cumulative 100bps hikes this year taking the Selic rate to 13.25%.

If you would like to subscribe to Brazil Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Brazil Monitor please click on the trial link below.