Interest Rate in Brazil
Brazil - Interest Rate
COPOM holds fire in September
At its 20–21 September meeting, the Monetary Policy Committee (COPOM) of Bazil’s Central Bank (BCB) decided to maintain the benchmark SELIC interest rate at 13.75%. The move, which markets had largely priced in, was not unanimous; as anticipated at its latest meeting in August, two of the nine members of the committee preferred a final 25 basis point increase. The decision follows a cumulative 1,175 basis point increase in 12 consecutive meetings since March 2021.
The Bank assessed that risks to the inflationary outlook remain in both directions. The Committee also noted that the external environment is volatile amid fears of a global recession. The COPOM took a wait-and-see approach given the lagged effects of monetary policy, which is already significantly in contractionary territory, on inflation. Headline inflation softened both in July and August.
With regard to forward guidance, the Bank reaffirmed its commitment to “persevere until not only the disinflation process is consolidated, but also the anchoring of expectations around its goals”. Consequently, the COPOM emphasized that “future monetary policy steps may be adjusted and will not hesitate to resume the adjustment cycle if the disinflation process does not proceed as expected”. As such, most of our panelists see the benchmark SELIC rate ending the year at its current level of 13.75%.
The next monetary policy meeting is scheduled for 25–26 October.
FocusEconomics panelists project the SELIC rate to end 2022 at 13.88% and 2023 at 10.81%.
Brazil - Interest Rate Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%) | 14.25 | 13.75 | 7.00 | 6.50 | 4.50 |
Brazil Interest Rate Chart
Source: Central Bank of Brazil.
Brazil Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 6.79 | -0.82 % | Dec 31 |
| Exchange Rate | 4.02 | -0.13 % | Jan 01 |
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Economic News
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Brazil: COPOM holds fire in September
September 21, 2022
At its 20–21 September meeting, the Monetary Policy Committee (COPOM) of Bazil’s Central Bank (BCB) decided to maintain the benchmark SELIC interest rate at 13.75%.
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Brazil: Economic activity beats expectations and grows at strongest rate in 17 months in July
September 15, 2022
Economic activity growth accelerated to 1.2% month on month in seasonally-adjusted terms in July (June: +0.9% mom).
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Brazil: Decline in retail sales softens in July
September 14, 2022
Retail sales fell 0.8% month on month in seasonally-adjusted terms in July (June: -1.4% mom).
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Brazil: Inflation falls to over one-year low in August
September 9, 2022
Consumer prices fell a seasonally-adjusted 0.36% in August over the previous month, a less pronounced fall than the 0.68% drop recorded in July.
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Brazil: Industrial output records quickest growth in five months in July
September 2, 2022
Industrial output increased 0.6% month-on-month in seasonally-adjusted terms in July (June: -0.3% mom).
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