May 30, 2013
Despite applause for its 50 basis points rate rise Wednesday, the Brazilian central bank’s decision has opened questions over the extent of the tightening cycle, with some fearing it will be short-lived.
Members of Copom, the rate setting committee of Brazil’s central bank, unanimously voted to increase rates by 50 basis points to 8.0% at their May 29 meeting. Analysts – divided ahead of the decision on whether rates would go up 25bp or 50bp – praised the move, saying it showed the central b
Despite applause for Brazil’s “bold” inflation-fighting 50 basis point rate hike Wednesday, analysts questioned the central bank’s commitment to keeping up the momentum