June 11, 2021 |
A recent spike in inflation is putting pressure on Brazil's central bank to prolong hikes in the Selic benchmark interest rate before the monetary policy committee meets next week, but investment bankers do not expect to see a significant impact in the capital markets.
The IPCA consumer price index jumped 0.83% in May, the sharpest increase for the month in 25 years, and pushed 12-month inflation to 8.06%, the highest point since September 2016, according to official statistics.
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Central bank could prolong hikes in the benchmark rate, but it will not have much of an impact on the capital markets, sources say