Brazilian Selic Rate Reduced to 12.25% from 12.75%

November 2, 2023

The Central Bank of Brazil‘s Selic interest rate crested at 13.75% from August 2022 to August 2023 when an initial 50-basis point reduction was undertaken. During the pandemic the rate had been as low as 2.0% from August 2020 to March 2021. Following September’s second rate cut, today’s 50-basis point cut leaves the rate at 12.25%, still well above the 5.2% rate of inflation. CPI inflation crested at 12.13% in April 2022, but monetary officials have a goal of 3.0% that is not likely to be sustained until after 2025. More interest rate reductions will be coming, but officials want the process to be done carefully as there are upside as well as downside price risks.

Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags:

ShareThis

This entry was posted on Thursday, November 2nd, 2023 at 8:14 am and is filed under Central Bank Watch. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.

css.php