Selic Rate
Another Brazilian Central Bank Interest Rate Cut
July 26, 2017
The Selic rate has been reduced to 9.25% from 10.25%. The previous cut was made at the end of May and also 100 basis points in size. The current easing cycle began three years ago in July 2014 at 17.5%. A statement released by Copom, the Central Bank of Brazil’s policymaking committee, observes continuing disinflation […] More
The Reaction to the Fed Statement
October 30, 2014
The FOMC communique was more hawkish than expected. Weak growth in Europe and enhanced global market volatility since the prior policy meeting did not deter monetary officials from ending the third phase of quantitative easing and declaring that U.S. deflationary risks had diminished. There was also a shift in direction of dissenting votes on the […] 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
Weaker Aussie Dollar and a Bunch of Items of Interest
January 16, 2014
The Aussie dollar fell 1.2% against its U.S. counterpart. The U.S. dollar otherwise slipped 0.3% against the loonie and Swiss franc, 0.2% relative to the yen and 0.1% against the euro. The dollar also firmed 0.2% against the kiwi, yuan and sterling. Brazil’s Selic interest rate has been raised by a further 50 basis points […] 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
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
Brazil Gets a Fourth Rate Cut
January 18, 2012
Copom, the policymaking committee of the Bank of Brazil, cut the Selic central bank interest rate by 50 basis points to 10.5%. This unanimously decided move follows similar half-percentage point reductions announced last August 31, October 19, and November 30. Slightly more than half of the 375 basis points of tightening from April 2010 through […] More
A Smaller Brazilian Rate Hike
April 20, 2011
Brazil’s committee of monetary policymakers, known as COPOM, has implemented its sixth rate hike of the cycle, increasing the benchmark Selic rate to 12.0% from 11.75%. In the earlier Great Recession, the Selic rate was cut in five moves from 13.75% at the end of 2008 to 8.75% by July 2009, and that low was […] More
