Market digests Copom, after FED toughens speech

Market digests Copom, after FED toughens speech
Market digests Copom, after FED toughens speech
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The Copom (Monetary Policy Committee) did not bring any news in the statement that informed about the decision to make a new cut of 0.50 percentage points in the Selic. As expected, the new target for the basic interest rate increased to 11.25% per year with the reduction.

The Central Bank also indicated that it should maintain the pace in the “next meetings” of the Committee with cuts of the same magnitude. This means that by May the national basic interest rate should rise to 10.25% per year, a reduction of 1 percentage point.

In today’s session, investors must respond to the maintenance of expectations about interest rates here and combine them with statements by the president of the FED (Federal Reserve), Jerome Powell, that an interest rate reduction in March there is unlikely.

English BC should keep interest rates unchanged

This Thursday, the 1st, the BOE (Bank of England) continues its monetary policy decisions and keeps the interest rate unchanged in the United Kingdom. The decision will be announced at 9am. Current interest on King Charles III’s lands is 5.25% per year.

Inflation in Europe is higher than expected

The pressure on prices in the Euro Zone was stronger than market expectations regarding the core indicator. The consensus of economists and analysts interviewed by Bloomberg pointed to 3.2% in the annual reading, which excludes the most volatile items. The number, however, remained at 3.3% for the 12 months ending in January. Despite this, there was a slowdown compared to the previous survey (until December). Core inflation in the region had stood at 3.4%. The data was released at 7 am and helped to raise interest rates on the continent, which also reacted to Powell’s speeches in this Thursday’s session.

The financial statements of Apple, Amazon and Meta are the highlight of the session and should impact negotiations. The results of the technology giants have been highly anticipated and are eagerly awaited by the market. The numbers will be known after the New York stock exchanges close.


The article is in Portuguese

Tags: Market digests Copom FED toughens speech

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