The Monetary Policy Committee (Copom) do Banco Central confirmed market expectations and decided, this Wednesday (6), to raise the basic interest rate by 0.50 percentage points, to 11.25% per year. The decision for the second consecutive increase in Selic was unanimous.
The Copom highlighted the need to control public debt, an issue that has been worrying large market players and which moved the federal government’s agenda in the last few days.
The monetary authority recalled that “a credible fiscal policy committed to debt sustainability, with the presentation and execution of structural measures for the fiscal budget, will contribute to anchoring inflation expectations.”
Like this took place at the September meetingthe Central Bank avoided giving future guidance (“forward guidance”) about what will be done with the Selic rate. “The pace of future interest rate adjustments and the total magnitude of the monetary tightening cycle will be dictated by the firm commitment to converge inflation to the target and will depend on the evolution of inflation dynamics”, said the Copom.
