Brazilian Selic Rate Hiked by 25 Basis Points to 10.75%
February 26, 2014
Brazil’s monetary policy committee, known as Copom lifted the Selic interest rate late on February 26 to 10.75% from 10.50%. The unanimous decision reduced in half the size of prior tightening moves made in January, November, October, August, July and May. An initial increase in April 2013 had also been 25 bps in size from a base of 7.25% prior to then. Brazilian inflation is near the top of the 2.5-6.5% target range but moving lower, while economic growth in late 2013 was close to nil. In these circumstances, analysts were predicting that the Selic rate would be raised by a smaller amount.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Brazil
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