Brazil Hikes Rate by 25bp

Brazil’s central bank tightened its rate by 25bp to 12.00%. It cites inflation risks, a moderation in activity and global economic uncertainty as reasons for the hike. It was not a unanimous decision, as there were 2 votes for a 50bp hike and 5 votes for the 25bp hike. JPMorgan was one of the banks that believed the bank would tighten by 25bp. “We expect the bank to choose a gradualist approach,” it says.