Brazil Central Bank Lifts Key Rate By 100 Bps; Signals Another Hike Next Month

(RTTNews) - Brazil's central bank raised its key interest rates by 100 basis points on Wednesday and signaled another hike of the same magnitude at the next meeting to bring inflation down to the target.

The monetary policy committee, known as Copom, unanimously decided to increase the Selic rate by 100 basis points to 6.25 percent from 5.25 percent.

The bank has raised its rate by a massive 425 basis points so far this year.

Policymakers observed that, at the current stage of the tightening cycle, this pace is the most appropriate to guarantee inflation convergence to the target and allow the committee to gain more information regarding the state of the economy.

"For the next meeting, the Committee foresees another adjustment of the same magnitude," the bank said in a statement.
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