🕊️ Dovish debut

Good morning! The Brazilian Olympic Committee on Wednesday endorsed the joint bid of Rio de Janeiro and Niterói to host the 2031 Pan-American Games. São Paulo gave up on running two weeks ago and, so far, only Asunción (Paraguay) has also confirmed its intention to host the event.

A minor (but important) inflection for the Central Bank

Brazil’s Central Bank on Wednesday raised its benchmark interest rate by one percentage point to 13.25%, marking its first policy decision under Gabriel Galípolo, who took over as chairman at the start of the year. 

Driving the news. The central bank’s board, now dominated by appointees of President Luiz Inácio Lula da Silva, signaled another rate increase of the same scale in March, consistent with its December guidance. However, citing persistent economic uncertainties at home and abroad, it declined to offer any indications of rate decisions beyond that.

Be smart. The rate hike, telegraphed by the bank in December, surprised no one. But the accompanying statement hinted at a subtle yet significant shift in the bank’s tone:

☕ Wake up smarter