Brazil’s central bank hiked its benchmark rate more than was expected

A 75bp hike vs. the 50 that was widely expected from the Banco Central do Brasil.

  • BCB add that they expect to hike another 75bps at the following meeting
  • says it has initiated a partial normalisation process, reducing its extraordinary degree of monetary stimulus
Despite with the FOMC and Powell tell us I think perhaps the BCB is providing a sneak preview of what is to come from the Fed prior to 2024. We’ll see.