Markets divided over Central Bank of Brazil’s rate decision scheduled today

The Central Bank of Brazil will announce its latest COPOM rate decision today. According to Bloomberg, analysts forecast the central bank to raise the SELIC policy rate by 50bp to 14.75%. Traders expect the central bank to raise rates by around 30bp.

"Although we see clear risk of the Bank restarting the tightening cycle which saw rates rise from 11% in October 2014 to 14.25% by July 2015, we think the Bank may well hold fire for the time being", says Rabobank.