"Moment of change in monetary policy"

Last week was marked by monetary policy decisions made by the central banks of the world’s major economies. In Brazil, the next monetary policy decision will be the highlight of this week, as the Brazilian Central Bank’s Monetary Policy Committee is scheduled to meet on June 20 and 21. Overall, the feeling around the world is that we are approaching a turning point, albeit of different natures, depending on the stage of the adjustment cycle in each economy.

In the United States, despite resilient inflation, labor market and economic activity data, the Federal Reserve decided to keep its policy rate unchanged in the 5.00%-5.25% range. The post-meeting communiqué was harsh, signaling that the institution may resume its cycle of interest rate hikes in future, as also signaled in projections by Federal Open Market Committee members, who mostly predicted two more increases this year.

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