Monetary Policy on the High Wire

BRAZIL ECONOMICS - Report 28 Jul 2014 by Affonso Pastore, Cristina Pinotti and Marcelo Gazzano

There was a good deal of suspense regarding the minutes of the last COPOM meeting. Since inflation continues hovering near the top of the target interval and there are substantial repressed pressures both from the temporary stability of the real and delayed adjustments of administered prices, it would be a mistake to reduce the SELIC rate. But economic growth has been decelerating, this is an election year and the Central Bank has been sending clear signals that it accepts higher inflation than the official target. For these reasons, the market believed the COPOM minutes could open the door to a reduction of the interest rate.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.