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Brazilian Central Bank October 22, 2021 / 07:51 am UTC

Brazil: Fiscal Prudence Fades Away; Central Bank Forced to Act

By Priscila Robledo
We expect the Central Bank of Brazil’s (BCB)’s Monetary Policy Committee (COPOM) to accelerate the pace of tightening in the October 27 meeting, increasing the policy rate by 150bps to 7.75%. This is justified by a deterioration of the fiscal trajectory. We now see the terminal rate at 10.0%.