The Central Bank of Brazil voted unanimously to lower its key Selic rate by 50bps to a record low of 6 percent during its July meeting, while markets had forecast a smaller 25bps cut. The Committee signalled further easing, underscoring that recent data indicate weaker economic activity from previous quarters; a decelerating global economy and slower domestic inflation. Interest Rate in Brazil averaged 14.90 percent from 1999 until 2019, reaching an all time high of 45 percent in March of 1999 and a record low of 6.50 percent in March of 2018.
Interest Rate in Brazil is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Brazil to stand at 5.50 in 12 months time. In the long-term, the Brazil Interest Rate is projected to trend around 5.75 percent in 2020, according to our econometric models.