BC Sins for Lack of Clarity in Decision on Interest

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After the meeting last week, the Central Bank's (BC) Monetary Policy Committee (Copom) announced the third consecutive cut of the basic interest rate, Selic, from 14.5% to 14.25% per year. The decision was expected, but the release then generated noise. Changes in Selic are extremely important for the projections and expectations of the financial market, but have no immediate consequences on the economy. When Selic changes, the Copom calculates …