Brazil Central Bank Cuts Rates for Fifth Straight Meeting
Copom’s unanimous move matched Reuters polling, with 48 of 51 economists expecting the fifth straight cut as growth slows and inflation eases.
- On Wednesday, Brazil's central bank committee, Copom, cut the benchmark Selic interest rate as economic momentum slows in Latin America's largest economy.
- Policymakers cited firmer signs of economic slowdown, including second-quarter data showing household consumption contraction, while the Federal Reserve raised rates to the 3.75%-4.00% range.
- The move aligned with expectations from 48 of 51 economists polled by Reuters, though rising oil prices amid Middle East conflict have pushed inflation expectations further from the official 3% target.
- Investors are now focusing on Copom's next meeting in early November, which follows an expected election runoff between President Luiz Inacio Lula and Senator Flavio Bolsonaro, son of President Jair Bolsonaro.
- Copom reaffirmed that future calibration cycles depend on new information to ensure inflation convergence, continuing a cautious easing cycle that has left Brazil with one of the highest real interest rates.
16 Articles
16 Articles
The basic interest rate is used in the negotiations of public securities issued by the National Treasury, serving as a reference for the other rates of the economy
Higher interest rates in the United States reduce the space for new Brazilian rate reductions
The Federation of Industries of the State of São Paulo (Fiesp) considered timid the decision of the Monetary Policy Committee (Copom) of the Central Bank (BC) to reduce the basic interest rate (Selic) by 0.25 percentage point, to 13.75% per year, this Wednesday, 16. For the entity, the cut was insufficient in the face of the indebtedness of families and companies and the slowdown of the Brazilian economy. Read more: Understand what the economy i…
Selic is down to 13.75% in unanimous decision; BTG, Suno and Nomad project pause and possible restart of cuts in 2027.
The Central Bank's Monetary Policy Committee (Copom) reduced Selic by 0.25 percentage point, from 14.0% a year to 13.75%, on Wednesday, 16. The decision was unanimous and was in line with the expectation of 75 of the 78 houses consulted by the Broadcast Projections. It was Selic's fifth consecutive cut. Interests already [...] The post Copom reduces Selic rate by 0.25 percentage point, to 13.75% a year appeared first in Tribuna do Norte.
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- 50% of the sources lean Left, 50% of the sources are Center
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