The Central Bank of Brazil unanimously decided to keep its benchmark interest rate at an all-time low of 2.00 percent on September 16th 2020, as widely expected. Policymakers noted that inflation climbed to 2.44 percent in August from 2.31 percent nudged by prices of food and some services. The Committee said that recent indicators suggest a partial recovery in domestic economic activity, still sectors more directly affected by social distancing measures remain depressed despite the offsetting effects of the government transfer programs. Policymakers added that the uncertainty about economic growth remains larger than usual, especially for the period starting at the end of this year. The bank also said that the current economic conditions continue to recommend an unusually strong monetary stimulus but it recognised that due to prudential and financial stability reasons the remaining space for stimulus, if it exists, should be small.

Interest Rate in Brazil averaged 14.45 percent from 1999 until 2020, reaching an all time high of 45 percent in March of 1999 and a record low of 2 percent in August of 2020. This page provides - Brazil Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Brazil Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Banco Central do Brasil

Interest Rate in Brazil is expected to be 2.00 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 2.25 in 12 months time. In the long-term, the Brazil Interest Rate is projected to trend around 2.50 percent in 2021 and 4.50 percent in 2022, according to our econometric models.

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Brazil Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
2.00 2.00 45.00 2.00 1999 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-05-06 09:15 PM Interest Rate Decision 3.0% 3.75% 3.25% 3.25%
2020-06-17 09:00 PM Interest Rate Decision 2.25% 3.0% 2.25% 2.25%
2020-08-05 09:20 PM Interest Rate Decision 2% 2.25% 2% 2%
2020-09-16 09:15 PM Interest Rate Decision 2% 2% 2% 2%
2020-10-28 09:00 PM Interest Rate Decision 2% 2%
2020-11-03 11:00 AM BCB Copom Meeting Minutes
2020-12-09 09:00 PM Interest Rate Decision 2%
2020-12-15 11:00 AM BCB Copom Meeting Minutes


News Stream
Brazil Holds Interest Rate at Record Low of 2%
The Central Bank of Brazil unanimously decided to keep its benchmark interest rate at an all-time low of 2.00 percent on September 16th 2020, as widely expected. Policymakers noted that inflation climbed to 2.44 percent in August from 2.31 percent nudged by prices of food and some services. The Committee said that recent indicators suggest a partial recovery in domestic economic activity, still sectors more directly affected by social distancing measures remain depressed despite the offsetting effects of the government transfer programs. Policymakers added that the uncertainty about economic growth remains larger than usual, especially for the period starting at the end of this year. The bank also said that the current economic conditions continue to recommend an unusually strong monetary stimulus but it recognised that due to prudential and financial stability reasons the remaining space for stimulus, if it exists, should be small.
2020-09-16
Brazil Cuts Interest Rates to Fresh Record Low
The Central Bank of Brazil unanimously decided to slash its benchmark interest rate by 25 bps to a new all-time low of 2.00 percent on August 5th, 2020, as widely expected. Policymakers noted that the economy is expected to contract further in Q2 to levels not seen since the Great Depression with the environment for emerging economies remaining challenging. Inflation is expected to pick up in 2021 and 2022 to 3.0 percent and 3.5 percent, respectively, from 1.6 percent in 2020. The bank does not foresee further reductions in the monetary stimulus, despite a high level of uncertainty from the coronavirus pandemic.
2020-08-05
Brazil Central Bank Outlines Private Bond-Buying Details
The Central Bank of Brazil outlined details of its private sector bond-buying program on the secondary market in a statement released on June 23rd 2020. The program aims to provide liquidity in the corporate bond market and to tackle potential dysfunctions amid the coronavirus crisis. Assets with a credit rating equivalent to "BB-" or higher, which are non-convertible into shares and have a maturity of at least 12 months, will be eligible for purchase taking into account the reference prices published by Anbima and B3. The bank added that there will be limits in the portfolio per issuer, per series of assets in the market and in relation to the risk classes of the assets in order to better control risk. The Central Bank of Brazil cut its benchmark interest rate by 75 bps to a fresh all-time low of 2.25% on June 17th 2020, as widely expected.
2020-06-23
Brazil Cuts Interest Rates to Fresh Record Low
The Central Bank of Brazil unanimously decided to slash its benchmark interest rate by 75 bps to a new all-time low of 2.25 percent on June 17th 2020, as widely expected. Policymakers noted that the economy is expected to contract further in Q2 and that the pandemic is particularly being felt in emerging markets. The Committee said that persevering in the process of reforms and necessary adjustments in the economy is essential for a sustainable economic recovery. Policymakers added that uncertainty regarding the reform agenda and permanent changes to the fiscal consolidation process could result in an increase in the structural interest rate. The Committee said that conditions prescribe expansive monetary policy, but the space for further easing is now very limited. Policymakers are monitoring the economic scenario and inflation expectations and said that further information on the evolution of the pandemic and a decline in fiscal uncertainty will be essential for its next steps.
2020-06-17

Brazil Interest Rate
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.