01/11/2023 – 18:36
The penultimate meeting of the Copom (Monetary Policy Committee) of 2023 ended on Wednesday night, 1st, which confirmed another 0.50% drop in the basic interest rate, which stood at 12.25% per year.
The announcement did not surprise the market, which already expected the Selic’s rate of decline to be maintained. The expectation, according to the Focus Bulletin released by the Central Bank on Monday, 30, is that the Selic will end the year at 11.75%.
+Fed Committee says it is strongly committed to returning inflation to the 2% target
“The market will be attentive to the announcement and what can be said about future meetings. We have seen the market adjust the terminal Selic higher, especially after statements from the government showing a possible lack of responsibility with the fiscal issue and the possibility of the US maintaining or increasing interest rates there”, said Carlos Holtz, planner finance of A7 Capital.
FED maintains interest rates in the USA.
Earlier, the North American FED also did not surprise the market and maintained the interest rate between 5.52% and 5.50% per year. “Tighter financial and credit conditions for families and businesses will likely weigh on economic activity, hiring and inflation,” the Committee wrote in a statement.
“The market reaction was slightly positive with the American interest rate market already pricing in that there will be no more interest rate hikes this year, and perhaps a downward cycle will begin from June 2024, which is very positive”, believes Marcelo Oliveira , CFA and founding partner of Quantzed.
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