Brazil: Central Bank leaves SELIC unchanged for second consecutive meeting
October 21, 2015
At its 21 October 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 was in line with market expectations and followed last meeting’s decision to pause its tightening cycle following seven consecutive rate hikes. As a result, the SELIC interest rate remains at a nine-year high.
In the brief accompanying statement, the Central Bank outlined that the decision to hold the SELIC interest rate stable was unanimous. In addition, the Bank explained that the move is consistent with its assessment of the current macroeconomic situation, inflation outlook and the current balance of risks. The Bank added that keeping the SELIC rate at this historically-high level for a long period is needed to bring inflation down to the target range, signaling a likely period of stable interest rates.