The Brazilian Central Bank monetary policy committee, known as the COPOM, will most likely raise interest rates or Selic another 50 basis points to 13.75% p.a. this evening when it meets. The highest rate in 6 years as the Central Bank is adamant to dominate the high inflation rate which has broken the 8% mark and is way over the target of 4.5%.
The monetary authorities are under pressure to stop the hikes from businessmen, politicians and bankers as the economy is heading to the worst recession in last 25 years.
High inflation and an economic contraction of at least 1.3% are in the cards for 2015 with 2016 not much better.
The announcement of the rat hike will be after market hours.
Brazil Energy Insight 
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