The Central Bank Monetary Policy Committee (Copom) released, on Tuesday (05), the attack on the July meeting and demonstrated concern for Donald Trump’s tariff. The document also provides for continuation of interruption in the interest cycle.
According to Copom, the imposition of unilateral tariffs of 50% by the United States on Brazilian exports has “relevant sectoral impacts and aggregate impacts still uncertain depending on how negotiations will be forwarded.”
This is the justification for maintaining Selic by 15% per year. The current level is the highest since July 2006. For the September decision, the BC signaled that it intends to choose maintenance by 15% as well. The committee also claims that, due to high uncertainty in the scenario, it is necessary to conduct the monetary policy with caution.
