At its 29 August meeting, the Central Bank's Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate by 50 basis points to 7.50% in a unanimous vote, in a decision widely expected by the market. The move followed a similar rate cut in July and represents the ninth consecutive meeting in which policymakers opted to cut interest rates. In the minutes released on 6 September, policymakers stressed that any further easing in monetary policy should be conducted with "maximum parsimony", which might be interpreted as a signal that the Central Bank has concluded its year-long easing cycle. In addition, the Bank stated that it expects a gradual recovery in economic activity going forward, which should benefit from various stimulus measures recently introduced by the government, better investment prospects as well as improving confidence in the economy. Regarding price developments, the Central Bank pointed that inflation in both 2012 and 2013 will likely overshoot its mid-point target of 4.5%.
Brazil Monetary Policy
Central Bank cuts SELIC rate to new record low
September 10, 2012
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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.