Ibovespa Edges Higher After BCB Monetary Policy Decision
The Ibovespa edged higher on Thursday, hovering near 168,000, after the BCB held the Selic rate at 13.75%, pausing its easing cycle. The decision came amid a challenging outlook marked by weaker growth, higher inflation and heightened uncertainty following President Lula’s reelection. Expectations were divided, with some investors anticipating a hold and others pricing in a sixth consecutive 25 bps cut. Policymakers cited higher inflation expectations, increased uncertainty and a “more pronounced deceleration” in economic activity. Credit-sensitive stocks were mixed. Major banks were mostly subdued, with Itaú and Bradesco edging higher, while Banco do Brasil fell over 0.5%. Utilities mostly declined, with Axia down more than 1%. Elsewhere, Petrobras rebounded nearly 2% alongside higher oil prices after plunging over 7% on Wednesday when the commodity sank. Vale gained nearly 1% as iron ore prices rose.
The Ibovespa edged higher on Thursday, hovering near 168,000, after the BCB held the Selic rate at 13.75%, pausing its easing cycle. The decision came amid a challenging outlook marked by weaker growth, higher inflation and heightened uncertainty following President Lula’s reelection. Expectations were divided, with some investors anticipating a hold and others pricing in a sixth consecutive 25 bps cut. Policymakers cited higher inflation expectations, increased uncertainty and a “more pronounced deceleration” in economic activity.
Credit-sensitive stocks were mixed. Major banks were mostly subdued, with Itaú and Bradesco edging higher, while Banco do Brasil fell over 0.5%. Utilities mostly declined, with Axia down more than 1%. Elsewhere, Petrobras rebounded nearly 2% alongside higher oil prices after plunging over 7% on Wednesday when the commodity sank.
Vale gained nearly 1% as iron ore prices rose.