Brazil Monetary Policy April 2016


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.

Participants in the LatinFocus Consensus Forecast see the SELIC rate ending 2016 at an average of 14.21%. Panelists see the SELIC rate ending 2017 at an average of 12.11%.

Author: Angela Bouzanis, Senior Economist

Sample Report

Looking for forecasts related to Monetary Policy in Brazil? Download a sample report now.


Brazil Monetary Policy Chart

Brazil Monetary Policy April 2016

Note: SELIC target rate (Taxa SELIC meta) in %.
Source: Central Bank of Brazil (Banco Central do Brasil).

Brazil Economic News

More news

Search form