On 19 January, 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 11.25%, in a decision broadly expected by market analysts. This was the first meeting convened by Alexandre Tombini, the new governor of the Central Bank of Brazil (BCB). In the minutes released on 27 January, the COPOM mentions that the inflation scenario deteriorated since the last meeting. The deterioration mainly reflects higher commodity prices. In addition, the Central Bank adopted several measures to curb the excessive rise of the Brazilian real. The BCB also stated that wages have risen faster than productivity in 2010, reflecting an imbalance between the growth of demand and supply. The Bank highlighted that the prudential measures recently announced are already leading to tighter credit conditions, with the daily average of credit operations falling in December.
Brazil Monetary Policy
Central Bank tightens reins at first meeting of 2011
January 19, 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.