Central Bank of Brazil

Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation

December 13, 2018

The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More

Softer Dollar

September 20, 2018

The dollar fell overnight by 0.8% against the kiwi, 0.6% relative to sterling, 0.4% vis-a-vis the euro and 0.2% versus the currencies of America’s NAFTA partners. The yen and yuan are unchanged. China partly matched Trump’s latest round of tariff hikes. While the 10-year German bund and British gilt yields settled back a basis point […] More

Brazilian and Indian Monetary Policy Decisions

August 1, 2018

Central Banks in two of the four BRIC economies held monetary policy reviews. Coincidentally, while the Brazilian Selic rate was left unchanged at 6.50%, the Indian repo rate was lifted 25 basis points to rest also at 6.50%. Previously, the Selic rate was lowered sharply by 50 basis points in 2016, 675 bps last year […] More

Central Bank of Brazil Breaks Streak of Interest Rate Cuts

May 17, 2018

Brazil’s key Selic interest rate had been reduced by a total of 725 basis points since October 2016, and Copom, the policy-making committee of the central bank, had not anticipated halting the easing cycle this soon when it previously deliberated in March. But by a unanimous 9-0 vote, officials agreed to leave the Selic rate […] More

Central Bank of Brazil Extends Declining Rate Cycle

March 21, 2018

The Brazilian Selic rate was reduced by an additional 25 basis points to 6.50%, extending its cumulative drop to 775 basis points during the last year and a half. Inflation is below 3% and the target midpoint of 4.5%. The monetary policy committee, Copom, released a statement expressing satisfaction with Brazil’s recovery, the global environment, […] More

Central Bank of Brazil

February 7, 2018

Brazilian monetary officials lowered the Selic interest rate by a total of 625 basis points in 2017, but the reduction of 50 basis points in December had been the smallest cut. After meeting this week, members of the monetary committee, Copom, decided unanimously to halve that increment to 25 basis points and asserted that “regarding […] More

Central Bank of Brazil

December 6, 2017

The Selic rate was reduced to 7.0% from 7.5%. The size of the decline, the smallest of eight in 2017, did not surprise analysts. The rate is 625 basis points lower than at end-2016 and down 10.5 percentage points since mid-2014. Today’s decision was voted unanimously and without bias by Copom, the policy committee, and […] More

Central Bank of Brazil

October 25, 2017

Brazil’s monetary policy committee, Copom, has undertaken the ninth interest rate reduction in the past twelve months, reducing its Selic Rate by 75 basis points to 7.5%. The previous four cuts were by a full percentage point each, and the Selic Rate prior to these nine reductions stood at 14.25%.  Earlier, 325 basis points of […] More

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