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Brazil’s central bank keeps the key rate at 2%

The SELIC rate remains at its lowest level, and below the expected inflation rate of 3.14% for the next 12 months
The SELIC rate remains at its lowest level, and below the expected inflation rate of 3.14% for the next 12 months
The SELIC rate remains at its lowest level, and below the expected inflation rate of 3.14% for the next 12 months
Data Bytes
21st September 2020

During its last meeting on September 16, the Central Bank of Brazil left the benchmark interest rate (SELIC) unchanged at 2%, after nine rate cuts in a row. The SELIC rate remains at its lowest level, and below the expected inflation rate of 3.14% for the next 12 months. 

The SELIC rate remains at its lowest level, and below the expected inflation rate of 3.14% for the next 12 months
In its statement published after the meeting, the committee projects that inflation will accelerate in the short run, supported by a temporary surge in food prices and the rebound in economic activity. In August, Brazil’s official inflation index (IPCA) rose by 2.44% y/y, compared to 2.31% y/y in July, driven mainly by food and gasoline prices. However, the figure remains lower than the target set at 4% for 2020.

Further data and analysis on Brazil’s economy could be found on the CEIC Brazil Economy in a Snapshot – Q3 2020 report.

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Brazil
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21st September 2020 Brazil’s central bank keeps the key rate at 2%