Brazil reduced interest rates to lowest level in two years

The Central Bank of Brazil reduced interest rates by 0.5 % this Wednesday, the lowest level since 2022

The Central Bank of Brazil reduced interest rates by 0.5 % this Wednesday, reaching the lowest level since 2023, when they remained at 13.75 %. Thus, the country maintains the basic interest rate of the economy (the Selic rate) at 10.75 % annually.

According to the regulator, “the decision to reduce interest again was based on the control of inflation, which is currently at 4.5 % year-on-year and is within the goal established for this year.”

For this year, the organization has set an inflation goal of 3.0 %, “with a tolerance margin of 1.5 points in both directions” and a maximum of 4.5 %.

Although cuts have been applied in the country since 2023, they have been moderated despite the insistence of President Luiz Inácio Lula da Silva, who points out that “a stronger rate cut would guarantee greater growth in the economy,” which in 2023 It was 2.9 %, above what was expected but below that of 2022 (3 %).

According to experts, the forecast indicates that the country’s economy will maintain its deceleration to 1.8 % this year. In the current situation, where the reduction in inflation is becoming slower, “and with a challenging global scenario, serenity and moderation is required in the conduct of monetary policy.”


Source: swissinfo

(Reference image source: Unsplash+, in collaboration with Getty Images)

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