Brazil’s Rate Hikes Expected to Continue

The decision of Brazil’s central bank to raise the Selic rate 50bp to 12.25% suggests that the tightening of monetary policy is increasing in pace, according to Itau. “We now believe the Copom will keep the pace of rate hikes this year, but will come further than we previously thought,” the shop says. Itau forecasts the Selic rate at 14.25% at the end of the year.