Brazil central bank weighed faster interest rate hikes -minutes

BY Reuters | ECONOMIC | 09/28/21 07:20 AM EDT

BRASILIA, Sept 28 (Reuters) - Brazil's central bank evaluated accelerating the pace of interest rate increases last week, minutes from its last policy meeting showed on Tuesday, but policymakers still expect to hike rates by another full percentage point next month.

The minutes of the Sep. 21-22 meeting, when the bank's rate-setting committee raised rates by 100 basis points to 6.25%, showed policymakers remain confident that the current pace of rate hikes will bring inflation back to target next year. (Reporting by Marcela Ayres Writing by Brad Haynes)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.