O Globo: 12/07/2022
On the contrary, Andrea Damico, partner, and chief economist at Armor Capital, believes that a more negative scenario has become more likely, with a higher inflation rate due to greater public expenditure. Despite that, uncertainty remains high.
“The scenario is currently very binary. We are at a critical moment, without any convictions. In an environment of small fiscal responsibility, we see assets’ risk premia increase, which may result in a negative cycle, forcing the Central Bank to rise the interest rate”.
Central Bank keeps basic interest rate at 13,75% and alerts about fiscal scenario
It is the fourth consecutive time that the committee keeps Selic rate on this level, which has been observed since August.
The Bank Central’s Monetary Policy Committee (Copom) has decided to maintain the basic interest rate – Selic rate – at 13.75% this Wednesday. The Copom defines this rate as every 45 days. This is the fourth consecutive meeting that the Committee keeps Selic rate at this level, observed since August.
