- As expected, the Copom last night hiked its benchmark Selic rate by 50 basis points to 13.75%, the highest since January 2009. The bank also signaled more rate hikes could be in the offing as it tries to pull inflation back to the 4.5% center of its target range by next year.
- Over the past six months rates have been lifted by 275 basis points despite pressure from a number of sides that growth and the government debt load are larger worries. The Brazilian economy is forecast to contract 1.3% this year.
- EWZ is lower by 9% YTD and 28% Y/Y.
- ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ