Brazil Interest Rate

The benchmark interest rate in Brazil was last recorded at 7.50 percent. Interest Rate in Brazil is reported by the Banco Central do Brasil. Historically, from 1999 until 2013, Brazil Interest Rate averaged 16.2 Percent reaching an all time high of 45.0 Percent in March of 1999 and a record low of 7.3 Percent in October of 2012. In Brazil, interest rate decisions are taken by The Central Bank of Brazil's Monetary Policy Committee (COPOM). The official interest rate is the Special System of Clearance and Custody rate (SELIC) which is the overnight lending rate. This page includes a chart with historical data for Brazil Interest Rate.

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Brazil Interest Rate
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Copom Raises The Selic Rate to 7.50%
BANCO CENTRAL DO BRASIL | Duarte Ricardo | duarte.ricardo@tradingeconomics.com  |  5/7/2013 4:05:43 PM


On April 17th, the Monetary Policy Committee (Copom) increased the benchmark Selic rate by 25pp to 7.50, ending a cycle of monetary easing that was initiated in August 2011.

Excerpt from the statement by the Central Bank of Brazil:

The Copom evaluates that the high inflation level and the dispersion of price increases, among other factors, contribute for inflation to show resistance and demand a monetary policy response. On the other hand, the Committee considers that domestic and, mainly, external uncertainties surround the prospective scenario for inflation and recommend that monetary policy should be administered with caution. 

The judgment of all the Copom members is convergent with respect to the need for a monetary policy action aimed at neutralizing risks that arise in the prospective scenario for inflation, especially for the next year. Part of the Committee, however, considers that there is an ongoing reassessment of global growth and that this process, depending on its intensity and length, may cause positive impacts over domestic prices dynamics. For those members of the Committee, an immediate action of monetary policy would not be recommended; however, this view was not supported by the majority of the Board.
 
In this context, the Copom decided to increase the Selic rate to 7.50% p.a., without bias, with six votes for the monetary policy action and two votes in favor of maintaining the Selic rate in 7.25% p.a..
 

ARCHIVE
COPOM MAINTAINS THE SELIC RATE AT 7.25% The Monetary Police Committee of the Central Bank of Brazil decided on March 6th to maintain its benchmark interest rate at 7.25 percent, without bias. 2013-03-07
Brazil Raises Rate to 13.75% Brazil's central bank raised its benchmark interest rate on September 10, to the highest in almost two years in a bid to cool accelerating economic growth that's stoking inflation. 2008-09-26
Copom Maintains the Selic Rate at 7.25 The Monetary Policy Committee of Central Bank of Brazil decided on January 17th to maintain its benchmark interest rate at 7.25 percent, without bias. 2013-02-11
Brazil Raises Interest Rate to 13% Brazil’s central bank raised the core interest rate by 0.75 percentage points on July 23, confirming the bank’s increasing concern over inflation. 2008-08-25
COPOM Maintains Selic Rate at 7.25% The Central Bank of Brazil Monetary Policy Committee (COPOM)unanimously decided to maintain the Selic rate at 7.25 percent on November 28th. 2012-12-11



Interest Rate | Notes

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.






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