Brazil Daily

😨 The Central Bank’s big worry

Good morning! Today, Central Bank shows its concern about “uncertainty.” New electoral polls show an unchanged picture. Brazil’s mobile telephony market set to become even more concentrated.

Central Bank fears fiscal mismanagement

Central Bank Chairman Roberto Campos Neto. Photo: Antonio Cruz/ABr
Central Bank Chairman Roberto Campos Neto. Photo: Antonio Cruz/ABr

The Central Bank published the minutes of its latest meeting, in which it raised the Selic benchmark interest rate to 10.75 percent. While not including much new information, the word choice of the monetary authority deserves attention, mentioning “uncertainty” four times in the document.

Why it matters. Central banks tend to avoid talking about uncertainty because it could fuel the perception among markets that authorities might not feel fully...

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