Brazil’s central bank cut the SELIC rate from 12.25 per cent to 11.75 per cent
This is the fourth consecutive cut in the benchmark interest rate
The Central Bank’s Monetary Policy Committee (Copom) announced on Wednesday, December 13, another 0.50 percentage point (p.p.) cut in the benchmark SELIC interest rate, from 12.25 per cent to 11.75 per cent per annum.
This is the fourth consecutive cut in the SELIC rate, which started to decline in August this year. This is reported by
TV CULTURA, a partner of TV BRICS.
At 11.75 per cent, the rate reached its lowest level since early March 2022 when it stood at 10.75 per cent per annum.
In a statement, the central bank said it will maintain this rate cut in future meetings if the current outlook remains unchanged. The decision was also unanimous.
“If the expected scenario is confirmed, members unanimously foresee a rate cut of the same magnitude at the next meetings and believe that this is an appropriate pace to maintain the contractionary monetary policy necessary for the disinflationary process,” the statement said.
“Central banks in the major economies remain determined to help bring inflation closer to target in an environment characterised by pressures in labour markets. In the committee’s view, the scenario continues to warrant caution from emerging economies,” the document added.
Copom is made up of Central Bank President Roberto Campos Neto and the organisation’s eight directors. The committee sets the SELIC rate every 45 days. The next meeting is due to take place between 30 and 31 January 2024.
The SELIC rate is the Central Bank’s main tool to keep official inflation, measured by the broad national consumer price index (IPCA), in check.