Monetary tightening in Brazil: "still not enough"

The minutes of the last week's monetary policy meeting, in which the SELIC rate was hiked by 50bp to 12.25%, confirmed our view that the ongoing adjustment of monetary conditions will continue in the short-term. We expect a 25bp hike in the next monetary policy meeting in March, but another 50bp adjustment should not come as a surprise as today's minutes left the door for this move open.

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