Central Bank of Brazil

Another Brazilian Central Bank Interest Rate Cut

July 26, 2017

The Selic rate has been reduced to 9.25% from 10.25%. The previous cut was made at the end of May and also 100 basis points in size. The current easing cycle began three years ago in July 2014 at 17.5%. A statement released by Copom, the Central Bank of Brazil’s policymaking committee, observes continuing disinflation […] More

Central Bank of Brazil

May 31, 2017

Brazil’s monetary policy committee, known as Copom, just reduced its Selic interest rate by a full percentage point to 10.25%. This was the fourth cut of 2017 and matched the size of the prior reduction in mid-April. Cuts of 75 basis points each were made in January and February. Two cuts of 25 basis points […] More

Full Percentage Point Reduction of the Brazilian Selic Interest Rate

April 12, 2017

The monetary policy committee at the Central Bank of Brazil, known as Copom, cut the Selic rate to 11.25% from 12.25%. This larger incremental cut after ones of 75 basis points in both January and February and 25 bps each last October and November was deemed appropriate according to a released statement. Analysts were anticipating […] More

Another Brazilian Central Bank Rate Cut

February 22, 2017

Brazil’s monetary policy committee known as Copom has reduced its Selic interest rate by 75 basis points for the second time in six weeks, and as in January the decision today was made unanimously. In conjunction with 25-basis point reductions last October and November, the Selic rate of 12.25% now stands two whole percentage points […] More

Pace of Brazilian Monetary Easing Moves to Higher Gear

January 11, 2017

Copom, the monetary policy committee, voted unanimously to reduce the Selic interest rate to 13.0% from 13.75%. This was the third cut since October but three times more sizable than the first two moves. Prior to the current round of easing, the Selic rate was increased from 7.25% in April 2013 to 11.0% a year […] More

A Second 25-Basis Point Brazilian Selic Rate Cut

November 30, 2016

The Central Bank of Brazil’s Selic Rate was reduced at a second straight meeting by 25 basis points to 13.75%. A similar reduction on October 19 had constituted a trend change. Previously between October 2014 and July 2015, Brazilian monetary policymakers had increased interest rates by 325 basis points from 11.0% to 14.25%. Officials on […] More

Central Bank of Brazil Leaves Selic Rate at 14.25%

August 31, 2016

The Selic Rate has been 14.25% since a 50-basis point hike in July 2015 culminated 325 basis points between July 2014 and July 2015. The decision was unanimous by Copom, Brazil’s monetary policymaking committee. A released statement says, Taking into account the baseline scenario, the current balance of risks, and the wide array of available […] More

Brazilian Selic Rate Kept at Restrictive 14.25%

July 20, 2016

Between October 2014 and July 2015, Brazilian monetary policymakers increased interest rates by 325 basis points, but a year has now passed since policy has changed.  Under a new governor of the Central Bank of Brazil, the key Selic interest rate was left at 14.25% despite a half-percentage point reduction of consumer price inflation to […] More

Central Bank of Brazil Leaves Policy as Is

June 8, 2016

Copom, the Brazilian monetary policy committee, kept its 14.25% Selic rate unchanged as expected.  Brazil remains deeply in recession, but inflation is twice as much as the 4.5% target and is thus the top concern.  Between October 2014 and July 2015, the Selic Rate was raised from 11% to 14.25% as the plunging real lifted […] More

Chinese Data and a Slew of Japanese Statistical Releases

June 8, 2016

Commodities, commodity-sensitive currencies like the kiwi and rand and other emerging market currencies like the won experienced another strong session.  West Texas Intermediate crude oil is trading marginally above $51 per barrel versus a February low of $26.05.  Gold advanced 0.9% to $1,258.7 per ounce, and copper jumped over 2%. Eurozone sovereign debt yields are under […] More