Brazil | We expect another SELIC hike in June
Published on Thursday, May 7, 2015
Brazil | We expect another SELIC hike in June
Summary
The minutes of last week's monetary policy meeting suggest that the tightening cycle is not over yet. According to the COPOM, the efforts to drive inflation down to 4.5% by the end of 2016 are "still not sufficient" and therefore monetary policy must remain "vigilant". We take today's minutes as a sign that the SELIC will be adjusted by 50bp to 13.75% in June.
Geographies
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- Brazil
Topics
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- Macroeconomic Analysis
Authors
Enestor Dos Santos
BBVA Research - Principal Economist