Brazil's Copom Raises Selic Rate by 100 Basis Points to 13.25% and Signals Another Hike in March

Brazil's Monetary Policy Committee, known as Copom, raised the Selic benchmark interest rate by 100 basis points to 13.25% on 29 January in a unanimous decision, and maintained its guidance that an equivalent 100 basis point increase would be appropriate at the following meeting in March. The decision was published on the Banco Central do Brasil website.

INFLATION

Brazilian consumer prices have continued to run above target.

MARCH GUIDANCE

Copom said that, if its expected scenario is confirmed, it anticipated an adjustment of the same magnitude at its next meeting.