INSUBCONTINENT EXCLUSIVE:
(Copom) increased the benchmark interest rate by 0.25 percentage points, citing growing inflation risks.This decision aligns with market
The move comes in response to a complex economic landscape.Copom highlighted the resilient economic activity, labor market pressures, and
positive output gap as key factors influencing their decision.The committee also noted elevated inflation projections and unanchored
expectations, necessitating a more contractionary monetary policy.Brazil Raises Selic Rate to 10.75% as Inflation Risks Mount
(Photo Internet reproduction)Internationally, the economic environment remains challenging
stance.Central banks worldwide remain committed to bringing inflation rates in line with targets, despite labor market
Economic indicators and the labor market have outperformed expectations, leading to a reevaluation of the output gap.Recent inflation
figures, including core measures, have exceeded targets
FGV, views the rate hike positively
Rate to 10.75% as Inflation Risks MountHowever, fiscal concerns loom large
The current fiscal framework does not ensure public debt sustainability, with projections indicating continued growth.Holland warns that any
Bank presidents supporting the rate hike.Future policy adjustments remain open-ended, dependent on inflation dynamics, projections,
