Brazil Reduces Benchmark Interest Rate Again. Still 18.5%.

In a unanimous decision, Brazil’s Monetary Policy Committee (Copom) moved ahead on Wednesday, November 23, with what it calls its "monetary flexibilization project" and reduced the country’s benchmark interest rate, the Selic.

Copom’s action lowered Brazil’s interest rate another half a percentage point. The Selic went from 19% per year, to 18.5%, still very high when compared to economies all over the world.

Meanwhile, October’s unemployment rate, which some blame on those same interest rates, remained the same as in September, 9.6%, even though, when compared to October of last year, there was a 0.9 percentage point reduction.

The jobless rate is measured by the Brazilian Institute of Geography and Statistics (IBGE) in the country’s six main metropolitan regions: São Paulo, Rio de Janeiro, Belo Horizonte, Recife, Salvador and Porto Alegre. 

In October, Brazilian workers earned a 1.4% greater salary than in September. Last month, Brazil’s average salary was US$ 431.83 (966,10 reais), and in September, US$ 437.97 (979,83 reais).

In comparison to October 2004, average worker income went up 1.8%. In October of last year, average salary was US$ 424.19 (949,24 reais).

ABr

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