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After the surprise hike in Brazil’s Selic rate, we estimate further adjustments in the coming months

Published on Friday, November 7, 2014 | Updated on Friday, November 7, 2014

After the surprise hike in Brazil’s Selic rate, we estimate further adjustments in the coming months

The minutes of the last MP meeting suggest that the tone of fiscal policy (expansive) and pressures on inflation will be key in the rate and magnitude of the future monetary tightening cycle. We believe that the Selic rate will reach 12.25% in early 2015.

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