Brazil Hikes Rate

Brazil’s central bank hiked its rate 25bp to 12.50% yesterday, in-line with a broad consensus. With the vast majority expecting the hike, the focus was on the language of the central bank’s statement, which removed the clause saying that “the adjustment of monetary conditions for a sufficiently prolonged period of time.” The new statement says that the bank decided to raise the rate “at this time,” suggesting that the bank may pause rate hikes in August. The central bank has raised the rate by 175bp since December.