At its 2 April meeting, the Central Bank's Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to raise the benchmark SELIC interest rate by 25 basis points to 11.00% in a unanimous vote. The increase matched market expectations. The decision to push borrowing rates up came amid ongoing concerns over supply-side related inflationary pressures, especially stemming from higher food prices. The Bank did not provide a detailed accompanying statement as it did in previous releases. However, most analysts interpreted the recent slowdown in the pace of monetary tightening-last month the rate was increased by 25 basis points after six consecutive months of 50 basis points hikes-as a signal that the Bank intends to bring this cycle to an end. LatinFocus Consensus Forecast participants see the SELIC rate ending 2014 at an average of 10.51%. Panelists see the SELIC rate ending 2015 at an average of 11.21%.
Brazil Monetary Policy
Central Bank rises SELIC rate again in April
April 2, 2014
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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 25, 2016
Brazil’s current account balance improved in September, continuing to build on the considerable gains made over the past year.
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.