Copom raises interest rate to 12.50%

The Monetary Policy Committee (“Copom”) of the Central Bank unanimously decided to raise Brazil’s benchmark interest rate, the Selic (“a taxa básica de juros”), from 12.25% to 12.50% per year. It was the fifth consecutive increase this year and has raised the Selic to the highest level since January 2009.

In a note at the end of last night’s meeting, differently from all its recent notes, Copom did not mention the existence of a “prolonged horizon” for further increases. And that has led some, but not all, market observers to believe that maybe the series of interest rate increases is at an end.