COPOM Hikes Selic Rate

Brazil’s central bank hiked its Selic rate 25bp to 12.25% last night. The move wise widely anticipated by banks. “The COPOM’s decision to reduce the pace of rate hikes from 50bps to 25bps at its meeting in April and its most recent documents suggest a high probability that the interest rate will be raised by the same magnitude as at the previous meeting,” Credit Suisse wrote before the move was announced.