Economics
Brazil Lifts Rates by Half a Point to 13.75%, Flags Another Hike Possible
- Central bank raised Selic rate by 50 basis points to 13.75%
- Policy makers to consider smaller boost at September meeting
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Brazil’s central bank raised its key interest rate by half a percentage point and left the door open for a smaller boost in September as it shifts its focus to the outlook for inflation more than a year ahead.
The bank lifted the Selic to 13.75% late on Wednesday, prolonging a monetary tightening cycle that’s increased borrowing costs by 11.75 percentage points since March 2021. In a statement, policy makers wrote that they will give more emphasis to price forecasts for early 2024 as recent tax changes leave more near-term estimates in flux.