Brazil's Central Bank Plans Another Similar Rate Increase, or Higher, in Next Meeting
By Jeffrey T. Lewis and Luciana Magalhães
SÃO PAULO--Brazil's central bank raised its benchmark lending
rate and signaled another increase at its next policy meeting in
August as consumer prices continue to rise rapidly and the economy
shows unexpected strength.
The bank on Wednesday raised the Selic by 75 basis points to
4.25%, as expected, the third consecutive increase of that size
this year. The Selic started the year at a record low of 2% and the
bank left it there at its first policy meeting of 2021 in
The bank's monetary committee said in the post-meeting statement
that its baseline scenario "indicates, as appropriate, a
normalization of the policy rate to a level considered neutral,"
adding that "this adjustment is necessary to mitigate the
dissemination of the temporary shocks to inflation."
Write to Jeffrey T. Lewis at firstname.lastname@example.org and Luciana
Magalhães at luciana.magalhães@wsj.com
(END) Dow Jones Newswires
June 16, 2021 18:11 ET (22:11 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.