Central Banks
Brazil’s Central Bank Meets With High Interest Rates Just Starting to Work
Brazil’s inflation expectations through 2028 are inching downward, indicating tight monetary policy is bearing fruit.
Photographer: Tuane Fernandes/BloombergBrazil central bankers bowled over investors earlier this year by lifting borrowing costs to the highest level in nearly two decades to fight above-target inflation. Their message today will be that it’s too early to alter their bold interest rate strategy as progress just starts to show.
Policymakers led by Gabriel Galipolo will keep the benchmark Selic unchanged at 15% for the second straight time on Wednesday, according to all analysts surveyed by Bloomberg. Moreover, the board will stick to its hawkish stance, staring down market bets that a rate cut could come as soon as December.