Economics
Brazil Central Bank Head Goes All-In With Bold Rate Hike Plan
- Bank delivers larger-than-forecast increase of 75 basis points
- Campos Neto signaled another hike of same size in next meeting
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For Brazil’s central bank chief Roberto Campos Neto, it was time for a swift change of course.
With inflation expectations quickly deteriorating, Campos Neto not only delivered the biggest interest rate increase in more than a decade but also signaled for the next meeting another hike of the same magnitude: 75 basis points, which boosted the Selic to 2.75% on late Wednesday and will likely take it to 3.5% in May.