Brazil Central Bank Chief Throws Cold Water on June Rate Hike

Brazil’s central bank president signaled aggressive interest rate hikes will end in May, prompting investors to dial back bets on a longer monetary tightening cycle.

It’s appropriate to signal a rate increase of 100 basis points at the next decision in May, Roberto Campos Neto told reporters on Thursday following the publication of the bank’s quarterly inflation report. An additional boost in the subsequent meeting of June “is not the most probable outlook, as we indicate in the minutes to the last meeting,” he added. “But, we are facing a very volatile outlook and we need to consider different possibilities.”