At its 28 November meeting, the Central Bank's Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to maintain the benchmark SELIC interest rate at a record-low of 7.25%, in a unanimous vote. The Central Bank's decision concludes the 15-month easing cycle during which the SELIC interest rate was reduced by a total of 525 basis points in ten consecutive meetings. Moreover, the decision came in line with market expectations. In an accompanying statement, policymakers concluded that, bearing in mind the balance of risks to inflation as well as 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 minutes, including details of the meeting, will be released on 6 December.
Brazil Monetary Policy
Central Bank reaches the end of the easing cycle
November 28, 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.