Brazil Expected to Hike Rate Today

Brazil’s central bank is widely expected to hike its Selic rate today by 25bp to 12.50%. The central bank has raised the rate by 150bp since December. Goldman Sachs says the decision will hinge upon the inflation and global economic outlook, real GDP growth, and the labor market. “We believe that Copom should extend the tightening cycle until December, which implies three more hikes of 25bp in addition to the increase tomorrow,” Goldman says.