Brazil: Central Bank leaves SELIC unchanged again despite high inflationary pressures
April 28, 2016
At its 28 April meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to leave the benchmark SELIC interest rate unchanged at 14.25%. The move marked the sixth meeting at which the Bank has held interest rates after seven consecutive rate hikes. The result was in line with market analysts’ expectations. The SELIC interest rate remains at a near-decade high amid high inflationary pressures and economic recession in Brazil.
In the brief accompanying statement, the Central Bank outlined that despite easing price pressures, high inflation along with elevated inflation expectations allow no room to ease monetary policy. Unlike last meeting, the decision to hold the SELIC interest rate stable was unanimous.