MNI BRIEF: Copom Hikes Rates By 50BP, No Forward Guidance

The Central Bank of Brazil (BCB) unanimously decided to hike its official Selic rate by 50 basis points to 14.75% as widely expected Wednesday, its highest level since July 2006, while offering no forward guidance for the next meeting in June.

"For the next meeting, the scenario of heightened uncertainty, combined with the advanced stage of the current monetary policy cycle and its cumulative impacts yet to be observed, requires additional caution in the monetary policy action and flexibility to incorporate data that impact the inflation outlook," the statement said.

The board's March decision, when the Monetary Policy Committee (Copom) hiked rates by 100bp to 14.25%, had guided one more smaller increase at May meeting.

"The risks to its inflation scenarios, both to the upside and to the downside, are higher than usual," added. This marks the sixth consecutive rate hike. (See MNI INTERVIEW: Brazil's Hiking Cycle Nearing End - Figueiredo)