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

Brazilian Monetary Policy Possibly Moves Closer to a Trend Reversal

March 6, 2013

Brazilian monetary policy is decided by Copom, a committee at the central bank, and such has been in easing mode since a 50-basis point Selic rate cut to 12.0% in August 2011.  Nine more reductions ensued, the most recent of which was a 25-bp cut last October.  That move left the key interest rate at […] 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

Brazilian Interest Rate Cut

May 31, 2012

Brazil’s monetary policy committee, COPOM, reduced its key Selic interest rate to 8.5% from 9.0% late Wednesday.  Such was the seventh reduction in an easing cycle begun nine months ago from a peak of 12.5%.  These seven cuts totaling 400 basis points offset eight increases totaling 375 bps between April 2010 and July 2011, and […] More