The Central Bank of Brazil voted unanimously to hold its key Selic rate at 6.50 percent on 31 October 2018 as widely expected, keeping borrowing costs at the lowest level in modern history amid target inflation and lackluster GDP growth. It was the first monetary policy meeting after the presidential election. Interest Rate in Brazil averaged 15.12 percent from 1999 until 2018, reaching an all time high of 45 percent in March of 1999 and a record low of 6.50 percent in March of 2018.

Brazil Interest Rate
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Brazil Holds Interest Rate at 6.50%


The Central Bank of Brazil voted unanimously to hold its key Selic rate at 6.50 percent on 31 October 2018 as widely expected, keeping borrowing costs at the lowest level in modern history amid target inflation and lackluster GDP growth. It was the first monetary policy meeting after the presidential election.

Policymakers underscored that 1) recent indicators of economic activity point to recovery of the Brazilian economy, at a more gradual pace than envisaged early this year; 2) the global outlook remains challenging, with reduction of risk appetite towards emerging economies, and 3) various measures of underlying inflation are running at appropriate levels.


The central bank started its easing cycle in October of 2016 after the inflation rate eased from double digits. The annual inflation rate increased to 4.53 percent in September of 2018 from 4.19 percent in August, above market expectations of 4.45 percent. It is the highest inflation rate since March of 2017, mainly driven by higher oil and food prices and reaching the midpoint of the central bank's target range of 4.5 percent +/- 1.5 percent.

The economic recovery is still taking longer than initially expected, with recent data affected by strikes. GDP expanded 1.0 percent year-on-year in Q2, easing from a 1.2 percent rise in the previous quarter and missing market expectations of a 1.1 percent increase. It was the slowest expansion since the second quarter of 2017. Meantime, industrial production in Brazil advanced 2 percent year-on-year in August 2018, following an upwardly revised 4.2 percent surge in the prior month and missing market consensus of a 3.2 percent gain. Year-to-date, industrial activity went up 2.5 percent over a year ago.

The median estimate in the last central bank poll of economists (26 Octubre 2018) currently points to growth of 1.36 percent for 2018 (vs 1.35 percent four weeks ago) and of 2.50 percent for 2019 (unchanged). Analysts expect the Selic rate to end 2018 at 6.50 percent (unchanged) and 8.00 for 2019 (unchanged).



Mario | mario@tradingeconomics.com
10/31/2018 9:15:23 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-08-01 09:00 PM Interest Rate Decision 6.5% 6.5% 6.5% 6.5%
2018-09-19 09:00 PM Interest Rate Decision 6.5% 6.5% 6.5% 6.5%
2018-10-31 09:00 PM Interest Rate Decision 6.5% 6.5% 6.5% 6.5%
2018-12-12 08:00 PM Interest Rate Decision 6.5% 6.5%


Brazil Money Last Previous Highest Lowest Unit
Interest Rate 6.50 6.50 45.00 6.50 percent [+]
Cash Reserve Ratio 25.00 25.00 100.00 25.00 percent [+]
Money Supply M0 286975.50 279406.91 296755.46 0.00 BRL Million [+]
Money Supply M1 367033.85 361191.40 367033.85 0.00 BRL Million [+]
Money Supply M2 2743366.37 2714884.28 2743366.37 0.01 BRL Million [+]
Money Supply M3 6085368.31 6048313.88 6085368.31 0.01 BRL Million [+]
Foreign Exchange Reserves 380290.00 380738.00 382549.00 1187.00 USD Million [+]
Banks Balance Sheet 6156144.10 5968057.90 6156144.10 1174638.70 BRL Million [+]
Loans to Private Sector 666439.00 674542.00 875284.00 169316.00 BRL Million [+]
Deposit Interest Rate 8.51 12.40 9394.29 7.81 percent [+]
Loan Growth 0.40 1.00 3.68 -1.01 percent [+]
Central Bank Balance Sheet 3470929272.00 3526683522.00 3526683522.00 6.40 BRL Thousand [+]


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. 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 November of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
6.50 6.50 45.00 6.50 1999 - 2018 percent Daily




Country Last
Argentina 63.29 Nov/18
Turkey 24.00 Oct/18
Mexico 8.00 Nov/18
Russia 7.50 Oct/18
Brazil 6.50 Oct/18
India 6.50 Oct/18
South Africa 6.50 Oct/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Oct/18
Australia 1.50 Nov/18
South Korea 1.50 Oct/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Oct/18
France 0.00 Oct/18
Germany 0.00 Oct/18
Italy 0.00 Oct/18
Netherlands 0.00 Oct/18
Spain 0.00 Oct/18
Japan -0.10 Oct/18
Switzerland -0.75 Oct/18


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