US EditionBrazil central bank hikes rates to near 20-year high, leaves next steps open
- Brazil's central bank raised its Selic benchmark rate by 50 basis points to 14.75% on Wednesday, marking the sixth consecutive increase and the highest level since 2006.
- The hikes respond to persistent inflation above the 3% target, global uncertainties including US trade tariffs, and the need for a contractionary monetary policy to control price pressures.
- Policymakers observed signs of slowing growth and moderate inflation risks on both sides, while economic and labor indicators remain strong amid an inflation rate of 5.49%.
- The unanimous decision matched most economists' forecasts and included the statement that caution and flexibility are needed given the advanced policy cycle and lingering uncertainty.
- The central bank revised down its inflation projection for 2025 to 4.8% and signaled uncertainty about future interest rate adjustments, with some economists suggesting a potential pause or reduction in rates later this year depending on how economic data develops.
11 Articles
11 Articles
BCB ups Selic rate to 14.75% per annum
Brazil's Central Bank's (BCB) Monetary Policy Committee (Copom) unanimously decided Wednesday to raise the Selic benchmark rate by 0.5 percentage points to 14.75% per year, consolidating a contraction cycle. This decision was driven by high food and energy prices and global economic uncertainties, and the financial markets were expecting the move.
Brazil Lifts Interest Rate to Nearly Two-Decade High of 14.75%
Brazil’s central bank increased its key interest rate by a half-point to the highest level since 2006, as policymakers work to tame above-target inflation while also heeding a worsening global economic outlook.
Real Time: Ibovespa reverberates Selic and US commercial agreement - Global Happenings
Follow Ibovespa and markets in real time. (Image: Reuters/Amanda Perobelli) Summary: THE Ibovespa (Ibov) Repercussions the decision of the Monetary Policy Committee (Copom) to raise Selic at 0.50 percentage point, taking the basic rate of fees for the level of 14.75% per year. But what bothers the market is the lack of predictability. The committee has not provided guidance for the June decision – one of the most anticipated points in rece…
Entities in the productive sector criticize the increase in Selic
The decision of the Committee on Monetary Policy (COPO) of the Central Bank (BC) to raise the Selic (the basic economic interest rate) to the largest level in 19 years has received criticisms from the production sector. Industry, trade and trade and trade centres have condemned the decision, which have been classified as excessive and threat to employment and income. In note, the National Confederation of Industry (CNI) commented that the rise i…
Coverage Details
Bias Distribution
- 67% of the sources lean Left
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
