Benchmark interest rate kept at 14.25%

20 de julho de 2016

Brasília – For the eighth time in a row, the Brazilian Central Bank has kept the benchmark interest rate the same. Its Monetary Policy Committee (Copom) left what is known as the Selic rate unchanged at 14.25% per annum this Wednesday. (20). This has been the interest rate since late July 2015. The Selic is the Central Bank’s principal tool for keeping inflation, measured by the Extended Consumer Price Index (IPCA), in check.

In a statement, Copom said inflation is projected to decline. Still, it points to short-term risks such as persistent food price hikes and uncertainty surrounding the approval and implementation of necessary economic reforms. These and other factors, according to the Copom, have led to the Selic being kept the same.

*Translated by Gabriel Pomerancblum