Brazil Monetary Policy


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.

Participants in the LatinFocus Consensus Forecast see the SELIC rate ending 2015 at an average of 14.26%. Panelists see the SELIC rate ending 2016 at an average of 12.80%.

Author: Angela Bouzanis, Senior Economist

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Brazil Monetary Policy Chart

Brazil Monetary Policy October 2015

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

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