At its meeting on 31 August, the Central Bank Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the SELIC interest rate by 50 basis points to 12.00%. The move was not unanimous, as two out of seven members of the Committee voted to leave the interest rate at 12.50%. The rate cut surprised market analysts, who had expected that the SELIC rate would remain unchanged in August. The move marked the first cut in interest rates since July 2009 and ends a period of rate increases that commenced in April 2010. A decline in interest rates aims to provide a cushion for the domestic economy as the global economic recovery falters. The decision, however, spurred new inflation concerns. Figures for mid-August consumer prices (IPCA-15), released on 19 August, showed that inflation continued to accelerate and stepped up to 7.1% (mid-July: 6.8%).
Brazil Monetary Policy
COPOM slashes interest rates by 50 basis points
August 31, 2011
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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.