In a very surprising move, Brazil’s COPOM decided to increase the Selic rate by 25bp to 11.25%

Published on Thursday, October 30, 2014

In a very surprising move, Brazil’s COPOM decided to increase the Selic rate by 25bp to 11.25%

Summary

The decision was not unanimous; the COPOM cites the less favorable inflation outlook amid a slow recovery after a recession in the first half of the year. The decision reinforces our view that more adjustments including more restrictive economic policies will be implemented. Activity data in Chile surprised to the downside and confirm GDP growth below 2% this year.

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BBVA Research BBVA Research

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67413_50292.pdf

English - October 30, 2014

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