Brazilian monetary policy

Central Bank of Brazil

September 4, 2014

The Brazilian Selic interest rate has been kept at 7.25%, its level since April and 375 basis points above the level prior to April 2013.  Moreover, the released statement, unlike July’s, did not suggest that this peak would necessariy be retained more then for “the moment.”  Officials must balance the realities of elevated inflation at […] More

Central Bank of Brazil

January 16, 2014

The monetary policy committee, Copom, raised Brazil’s Selic Rate by 50 basis points, twice as much as expected.  There were also increases of 50 basis points implemented last year in November, October, August, July and May as well as an initial 25-bp hike done in April.  The new Selic Rate of 10.5% hasn’t been this […] More

Central Bank of Brazil Lifts Selic Rate Further

August 29, 2013

In a nearly universally expected move, Brazil’s monetary policy committee, Copom, increased the Selic interest rate to 9.0% from 8.5%.  The cumulative move over the past four months has been an advance of 175 basis points through increments of 25 bps in April and 50 bps each in May, July and now August. A released […] More

A Second Central Bank Interest Rate Hike in Brazil

May 29, 2013

Brasília-Giving continuation to the basic interest rate adjustment, the Copom decided unanimously to raise the Selic rate to 8.00% per year, without bias.  The Committee notes that this decision will contribute to put inflation on the decline and ensure that this trend will continue next year.  In several ways, today’s decision by the Central Bank […] More

Bank of Brazil Policymakers Elect to Cut the Selic Rate for a Tenth Time

October 11, 2012

The monetary policy committee, Copom, reduced its main Selic interest rate to a record low of 7.25% from 7.5% late Wednesday and released a statement that underscored the difficulty of policymaking in a period of excessively weak economic growth but also higher inflation. Considering the balance of risks for inflation, the domestic activity recovery and […] More