Brazil Interest Rate  1999-2017 | Data | Chart | Calendar | Forecast

The Central Bank of Brazil unanimously cut its key Selic rate by 100 basis points to 10.25 percent on May 31st of 2017, as widely anticipated. It is the sixth straight rate decline, bringing borrowing costs to the lowest since December of 2013 amid slowing inflation and a sticky contraction. It follows a 100 bps cut in the April 12th of 2017 meeting. Interest Rate in Brazil averaged 15.59 percent from 1999 until 2017, reaching an all time high of 45 percent in March of 1999 and a record low of 7.25 percent in October of 2012.

Brazil Interest Rate
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Calendar GMT Actual Previous Consensus Forecast (i)
2017-02-22 09:20 PM Interest Rate Decision 12.25% 13% 12.25% 12.25%
2017-04-12 09:00 PM Interest Rate Decision 11.25% 12.25% 11.25% 11.5%
2017-05-31 09:00 PM Interest Rate Decision 10.25% 11.25% 10.25% 10.25%
2017-07-26 09:00 PM Interest Rate Decision 10.25% 9.75%
2017-09-06 09:00 PM Interest Rate Decision 9.75%
2017-10-25 08:00 PM Interest Rate Decision 9.25%




Brazil Cuts Key Interest Rate To 3-1/2-Year Low Of 10.25%


The Central Bank of Brazil unanimously cut its key Selic rate by 100 basis points to 10.25 percent on May 31st of 2017, as widely anticipated. It is the sixth straight rate decline, bringing borrowing costs to the lowest since December of 2013 amid slowing inflation and a sticky contraction. It follows a 100 bps cut in the April 12th of 2017 meeting.

The statement underscored that inflation developments remain favorable; that inflation expectations for 2017 fell to around 4.0 percent; and that the Copom views the heightened uncertainty regarding the speed of the process of reforms and adjustments in the Brazilian economy as the main risk factor. The Committee also mentioned that a softer pace of monetary easing relative to the 100 bps cut of the May 31st meeting is likely to be appropriate at its next meeting.

The central bank started its easing cycle in October last year after the inflation rate eased from double digits. Inflation slowed faster than expected in the past seven months due to subdued economic activity and a stronger real. Consumer prices in Brazil increased 4.08 percent year-on-year in April of 2017, following a 4.57 percent rise in March and in line with market expectations of 4.1 percent. The inflation rate slowed for the eighth straight month to the lowest since July of 2007, standing below the central bank target of 4.5 percent for the first time since December of 2009.

Still, the economic recovery could take even longer than initially expected: Brazil’s industrial production expanded only 1.1 percent year-on-year in February, compared to expectations of a 2.1 percent rise. Consumer confidence declined to 100.6 in May of 2017 from 103.4 in the previous month. Political uncertainty coming from President Temer’s involvement in Lava Jato could explain the decline. On the positive side, the manufacturing PMI increased to 50.1 in April of 2017 from 49.6 in March, beating market expectations of 49.8. The reading pointed to the first expansion in factory activity since January of 2015. The median estimate in a central bank poll of economists currently points to growth of 0.49 percent in 2017 and 2.48 percent in 2018. Analysts expect the Selic rate to end 2017 at 8.50 percent (unchanged compared to 4 weeks ago).

Mario | mario@tradingeconomics.com
5/31/2017 9:09:23 PM



Brazil Money Last Previous Highest Lowest Unit
Interest Rate 10.25 11.25 45.00 7.25 percent [+]
Cash Reserve Ratio 45.00 45.00 100.00 42.00 percent [+]
Money Supply M0 237651.51 263654.53 270287.15 0.00 BRL Million [+]
Money Supply M1 307874.03 309897.99 351148.12 0.00 BRL Million [+]
Money Supply M2 2342597.56 2317089.22 2369721.75 0.01 BRL Million [+]
Money Supply M3 5423627.99 5417125.32 5423627.99 0.01 BRL Million [+]
Foreign Exchange Reserves 376491.00 374945.00 379156.50 1187.00 USD Million [+]
Banks Balance Sheet 5715530.53 5841315.34 5978463.45 1174638.00 BRL Million [+]
Loans to Private Sector 775267.00 775036.00 875283.00 169316.00 BRL Million [+]
Deposit Interest Rate 12.40 12.62 9394.29 7.81 percent [+]
Loan Growth -0.20 0.20 3.68 -1.01 percent [+]
Central Bank Balance Sheet 3050753991.00 3045141681.00 3050753991.00 6.40 BRL Thousand [+]


Brazil Interest Rate Notes

In Brazil, interest rate decisions are taken by The Central Bank of Brazil's Monetary Policy Committee (COPOM). The official interest rate is the Special System of Clearance and Custody rate (SELIC) which is the overnight lending rate. This page provides - Brazil Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Brazil Interest Rate - actual data, historical chart and calendar of releases - was last updated on June of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
10.25 11.25 45.00 7.25 1999 - 2017 percent Daily



interest rate by Country

Last
Brazil 10.25 May/17
Russia 9.00 Jun/17
Turkey 8.00 Jun/17
Mexico 7.00 Jun/17
India 6.25 Jun/17
Indonesia 4.75 Jun/17
China 4.35 Jun/17
Australia 1.50 Jun/17
South Korea 1.25 May/17
United States 1.25 Jun/17
Canada 0.50 May/17
United Kingdom 0.25 Jun/17
Euro Area 0.00 Jun/17
France 0.00 Jun/17
Germany 0.00 Jun/17
Italy 0.00 Jun/17
Netherlands 0.00 Jun/17
Spain 0.00 Jun/17
Japan -0.10 Jun/17
Switzerland -0.75 Jun/17