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.
Interest Rate in Brazil averaged 14.56 percent from 1999 until 2020, reaching an all time high of 45 percent in March of 1999 and a record low of 2.25 percent in June 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 August 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 2.50 in 12 months time. In the long-term, the Brazil Interest Rate is projected to trend around 3.00 percent in 2021 and 5.00 percent in 2022, according to our econometric models.