Analysis: In the pre-COPOM, doubts increase in the market about the strategy for Selic

There is a growing feeling that part of the board would not be willing to go much further in the monetary tightening cycle

According to the expert, 'raising the rate, combined with the maintenance or reduction of interest rates by the Fed, tends to increase the interest differential between Brazil and the USA' The post Copom should raise Selic by 1 point at today's meeting appeared first on Mercantile Monitor.

The Monetary Policy Committee (Copom) of the Central Bank (BC) closes the second meeting of 2025 this Wednesday (19), with all market chips betting on a new 1-point increase, raising interest rates to 14.25% per year. If the expectation comes true, it will be Selic's highest level since 2016, during the administration of Dilma Rousseff (PT). With no expectation of surprise in the result, analysts' attention turns to the tone of the Copom stateme…

Unanimous projection is for interest rates to rise by one percentage point, to 14.25% per year; in the USA, interest rates are expected to be maintained

The meeting of the Monetary Policy Committee (Copom) began this Tuesday (18). In it, the new interest rate level, currently at 13.25%, was discussed. The result of that meeting will be announced this Wednesday (19). An increase of 1 percentage point is expected to occur, raising the Selic rate to 14.25% per year. If this forecast comes true, it will be the highest level since 2016. The Central Bank must adopt a “data dependent” approach, adjusti…