The Monetary Policy Committee (COPOM) is a board composed of specific members of the staff and departments of the Central Bank of Brazil. It is chaired by the President of the Central Bank and consists of members of the Board of Directors and heads of the following departments: Department of International Reserve Operations (DEPIN), Department of Banking and Payment System Operations (DEBAN), Department of Open Market Operations (DEMAB) and Department of Studies and Research (DEPEP), and other members from central bank, who are invited according to the agenda of issues to be addressed at the meeting.
The Committee meets about eight times a year (every 45 days) and aims to establish the monetary policy guidelines, to set the Selic rate target and its bias (if the Selic rate trend until the next meeting will be high, low or neutral), to analyze the Inflation Report and to meet the inflation targets determined by the National Monetary Council.
COPOM decisions are taken in order to align the inflation, measured by the National Index of Consumer Price (IPCA), with the target set by the National Monetary Council (CMN). The meeting lasts two days, and on the second day, only the members with voting rights (the Chairman of the Committee and the members of the Collegiate Board of Directors) participate in order to define the guidelines of the Brazilian economy. At the end of the meeting, with the guidelines established, the Minutes of the COPOM Meeting are written and officially published by the Central Bank of Brazil.
The decisions of the COPOM Meeting directly affect the entire investment market, as well as the value of the national currency, the price of commodities and products and services that are made available in Brazil, for example: inflation above the target set by the National Monetary Council directly affects the financial market, resulting in the devaluation of the shares on the Stock Exchange; the opposite tends towards the appreciation of shares.