At its 10 October meeting, the Central Bank's Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate by 25 basis points to a new record-low of 7.25%, in a 5-3 split vote. The decision surprised most market analysts, who had expected the Bank to stay put in October, and represents the tenth consecutive meeting in which policymakers opted to cut interest rates. In an accompanying statement, policymakers concluded that, bearing in mind the balance of risks to inflation, the recovery in economic activity and strong external headwinds, the stability of monetary conditions for a sufficiently long period of time is the most appropriate strategy to ensure the convergence of inflation to the target, although in a non-linear fashion. The communique might be therefore interpreted as a signal that the Central Bank has finally concluded its year-long easing cycle. The minutes, including details of the meeting, will be released on 18 October.
Brazil Monetary Policy
Central Bank cuts SELIC rate again defying expectations
October 10, 2012
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Brazil Monetary Policy Chart
Note: SELIC target rate (Taxa SELIC meta) in %.
Source: Central Bank of Brazil (Banco Central do Brasil).
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.