Low Inflation Leads Brazil to Hold Benchmark Interests at 19.75%

The nine members of the Brazilian Central Bank’s Monetary Policy Committee (Copom) decided unanimously, yesterday, July 20, to maintain the government’s annualized benchmark interest rate at 19.75%.

The so-called Selic rate is used as a benchmark for bank loans, and over half of the Brazilian government’s domestic debt is pegged to the Selic.


“After evaluating the prospects for the trend in inflation, the Copom decided, unanimously, to maintain the annualized Selic rate at 19.75%,” the Committee says in its note.


To calculate the Selic, the Copom takes into account various factors, including the outlook for future inflation (the next 30 days) and momentary upward or downward price tendencies in the economy.


ABr

Tags:

Ads

You May Also Like

Brazil’s CVRD Issues Record US$ 1 Billion in Bond to Foreigners

Brazil’s Vale do Rio Doce Company has just announced the sale of US$ 1 ...

World’s Largest Floating Christmas Tree in Rio Grows to 280 Feet and 3.3 Million Lights

Celebrating a 15-year tradition Brazilians and foreign visitors alike, thousands of them, gathered at ...

Brazil Goes to Algeria to Reduce Trade Deficit with that Country

On November 20-22, the Brazilian Minister of Development, Industry, and Foreign Trade, Luiz Fernando ...