On 2 March, the Central Bank Monetary Policy Committee (COPOM, Comite de Politica Monetaria) unanimously decided to raise the target for the benchmark SELIC interest rate by 50 basis points to 11.75%, in a decision broadly expected by market analysts. In a very brief communique, the COPOM stated that the move was aimed at resuming the process of ?adjustment of monetary conditions?. The decision was announced against a backdrop of rising inflation expectations, as inflation is quickly approaching the upper limit of the Central Bank's target of 4.5% 2.0 percentage points set for this year. Since last December, monetary authorities announced a round of so-called macro-prudential measures, such as adjustments in banks' reserve requirement ratios (RRR) and capital requirements for long-term loans (excluding mortgages) to individuals. Combined with traditional policy actions, the measures are beginning to show results, with the daily average of credit operations decelerating markedly.
Brazil Monetary Policy
Central Bank continues to tighten reins
March 2, 2011
Looking for forecasts related to Monetary Policy in Brazil? Download a sample report now.
Brazil Economic News
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.
October 3, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in September, increasing from August’s 45.7 to 46.0.