{"id":22499,"date":"2011-07-21T02:11:00","date_gmt":"2011-07-21T06:11:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?guid=e8ff86e70ffaea5cf4ee9cf43084fc13"},"modified":"2011-07-21T02:11:00","modified_gmt":"2011-07-21T06:11:00","slug":"central-bank-of-brazil-lifts-selic-rate-25bps-to-12-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/07\/21\/central-bank-of-brazil-lifts-selic-rate-25bps-to-12-50\/","title":{"rendered":"Central Bank of Brazil Lifts Selic Rate 25bps to 12.50%"},"content":{"rendered":"

The Banco Central Do Brasil<\/a><\/span> increased the Selic interest rate by 25 basis points to 12.50% from 12.25% previously.  In its statement, Brazil’s Central Bank Monetary Policy Committee (Copom) said: “evaluating the prospective scenario and the balance of risks for inflation, the Copom decided, unanimously, at this moment, to raise the Selic rate to 12.50% p.a., with a neutral bias.”  The statement dropped the use of the words “prolonged period” in terms of adjusting monetary conditions, suggesting the Bank may be near an end to its tightening cycle.<\/span><\/span><\/p>\n

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Brazil’s central bank also raised the Selic rate<\/a> by 25 basis points to 12.25% at the June Copom meeting this year.  Brazil reported an annual inflation rate of 6.71% in June this year, up slightly from 6.55% in May, and just out side the official inflation target of 4.50% +\/-2% (2.5-6.5%).  The Brazilian government is forecasting economic growth this year of 4.5-5%, compared to GDP growth of 7.5% during 2010.  The “BRIC” emerging market economy grew 1.3% q\/q in the March quarter, placing annual growth at 4.2%.<\/span><\/span><\/div>\n

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The Brazilian central bank also made headlines earlier this month when it announced further measures to discourage dollar shorting<\/a> in order to cap a persistent rally of its currency, the Real.  The central bank will require that banks with short US dollar positions hold 60% of the value of short positions greater than $1 billion in non-interest bearing deposits at the central bank.  The Brazilian Real has appreciated 20% against the US dollar over the past two years.<\/span><\/span><\/div>\n

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www.CentralBankNews.info<\/span><\/a><\/span><\/span><\/div>\n
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The Banco Central Do Brasil increased the Selic interest rate by 25 basis points to 12.50% from 12.25% previously.  In its statement, Brazil’s Central Bank Monetary Policy Committee (Copom) said: “evaluating the prospective scenario…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-22499","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=22499"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22499\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=22499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=22499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=22499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}