Central Bank of Brazil Kept 8.75% Selic Rate As Expected
October 22, 2009
Brazilian monetary officials did not change policy for a third straight meeting. The policy Selic rate has been 8.75% since a 50-basis point cut announced on July 22nd. There were also four rate reductions during the first half of 2009 totaling 450 basis points. The prior cyclical peak of 13.75% had been in place from September 10, 2008 to January 21, 2009. Brazilian GDP reverted to positive growth in the second quarter, rising 7.8% at an annualized rate, but activity remains below year-earlier levels. GDP dropped 1.2% in the year to 2Q09, while industrial output fell by 7.2% in the year to August. CPI inflation decelerated to 4.3% in September from 6.3% a year earlier.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
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