Central Banks
Brazil Central Bank Lifts Its Interest Rate and Signals More Hikes Ahead, Bucking Global Trend
- Rate hike comes hours after Fed eases its own policy
- Policymakers say in statement they are starting a hiking cycle
The Central Bank of Brazil headquarters in Brasilia.
Photographer: Gustavo Minas/BloombergThis article is for subscribers only.
Brazil’s central bank raised its interest rate by a quarter-point and said more hikes are coming on resilient growth and inflation expectations, moving in the opposite direction of the Federal Reserve and regional peers.
Policymakers raised the benchmark Selic to 10.75% late Wednesday in an unanimous vote marking first hike since 2022. The decision was expected by 31 of 35 economists in a Bloomberg survey. Two others forecast a bolder, half-point rise, and the remaining two estimated no change.