Today’s Half Percentage Point Further Increase in Brazil’s Selic Interest Rate Had Been Expected
May 7, 2025
After decelerating from 12.1% in mid-2022 to 3.2% a year later, Brazilian consumer price inflation climbed back to a 25-month high of 5.5% by March of this year. Today’s increase in the Central Bank of Brazil’s Selic interest rate from 14.25% to 14.75% was the sixth hike since September for a total climb since then of 425 basis points. A released statement after this latest move observes above-target expected inflation of 5.5% this year and 4.5% in 2026 and notes: “For the next meeting, the scenario of heightened uncertainty, combined with the advanced stage of the current monetary policy cycle and its cumulative impacts yet to be observed, requires additional caution in the monetary policy action and flexibility to incorporate data that impact the inflation outlook.” The central bank’s inflation target is 3%.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Brazil
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