O Globo: 06/15/2022
Andrea Damico, Armor Capital chief economist, highlights that despite an even stronger Fed Funds increase tomorrow, Brazilian Central Bank should keep a 50 bps Selic rate hike.
Brazil and US are in different moments in the monetary cycle, we have already accelerated the hike pace. Now it is more appropriate to slowdown, said the economist, who expects a 50 bps Selic rate increase this Wednesday and another one the next meeting.
“Central Bank defines interest rate today: see the uncertainties surronding the Monetary Policy Committee’s decision”
On the “super-Wednesday”, monetary tightening in the US and fiscal impact of fuel’s tax cut are some of vectors considered. The main uncertainty is regarding further interest rates hikes
It has been a long time since the Monetary Policy Committee’s (Copom) meetings surprised on its Selic rate decisions. The communication between the Central Bank and market agents had been helping to anchor economic players’ expectations. But in there are more uncertainties than usual on today’s meeting: it is not regarding the 50 bps hike, but about the signaling for upcoming decisions.
