Economics
Brazil’s Key Rate Seen Topping 12% on Hawkish Central Bank Sign
- Central bank cites need of “more restrictive” hiking cycle
- Policy makers to slow down world’s most aggressive tightening
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Wall Street banks raised their forecasts for Brazil’s benchmark interest rate at the end of the country’s aggressive monetary tightening campaign after policy makers signaled multiple increases still lie ahead.
JPMorgan Chase & Co., Bank of America Corp and Barclays LLC. now see rate hikes in March and May, with the benchmark Selic topping out at 12.25%, according to research reports published on Tuesday. Itau Unibanco, Brazil’s biggest lender, sees borrowing costs reaching as high as 12.50%.