Brazil Interest Rate  1999-2018 | Data | Chart | Calendar | Forecast

The Central Bank of Brazil kept its key Selic rate unchanged at 6.50 percent on 16 May 2018 following a 25-bps slash on 21 March 2018. The hold, unanimously voted, surprised markets who expected a 25bps decline and ended eleven straight cuts, keeping borrowing costs at the lowest in modern history amid below-target inflation and a gradually improving economy, albeit recent setbacks. Interest Rate in Brazil averaged 15.29 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 Unexpectedly Holds Key Rate


The Central Bank of Brazil kept its key Selic rate unchanged at 6.50 percent on 16 May 2018 following a 25-bps slash on 21 March 2018. The hold, unanimously voted, surprised markets who expected a 25bps decline and ended eleven straight cuts, keeping borrowing costs at the lowest in modern history amid below-target inflation and a gradually improving economy, albeit recent setbacks.

Policymakers highlighted that inflation risks remained balanced in both directions, underscoring intensified financial turbulence in emerging markets since the last reunion. Regarding the next meetings, the Committee sees as adequate the maintenance of the interest rate at the current level, contrasting with an easing bias during the previous meeting.

The central bank started its easing cycle in October of 2016 after the inflation rate eased from double digits. Consumer prices increased to 2.76 percent year-on-year in April of 2018 from 2.68 percent in March and compared to market expectations of 2.82 percent. Considering the first four months of 2018, the cumulative inflation was 0.9 percent, the lowest for an April month since the real was implemented in 1994.

The economic recovery is still taking longer than initially expected, with some recent setbacks. The IBC-Br index of economic activity in Brazil shrank 0.74 percent month-over-month in March of 2018, after a revised 0.10 percent slump in February. It was the steepest decline in economic activity since December of 2016 (-0.78 percent). Year-on-year, the Brazilian economy contracted 0.66 percent on a non-seasonally adjusted basis, the most in near a year, after growing 0.51 percent in the previous month. Meanwhile, industrial output grew 1.30 percent year-on-year in March of 2018, following a downwardly revised 2.4 percent rise in February. It is the smallest gain in industrial output since June 2017 when it grew 0.8 percent.

The median estimate in the last central bank poll of economists (11 May 2018) currently points to growth of 2.51 percent for 2018 (vs 2.76 percent four weeks ago) and of 3.00 percent for 2019 (unchanged). Analysts expect the Selic rate to end 2018 at 6.25 percent (unchanged). 


Mario | mario@tradingeconomics.com
5/17/2018 3:31:24 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-02-07 08:20 PM Interest Rate Decision 6.75% 7% 6.75% 6.75%
2018-03-21 09:00 PM Interest Rate Decision 6.50% 6.75% 6.5% 6.75%
2018-05-16 09:00 PM Interest Rate Decision 6.50% 6.50% 6.25% 6.25%
2018-06-20 09:00 PM Interest Rate Decision 6.50% 6.5%
2018-08-01 09:00 PM Interest Rate Decision 6.5%
2018-09-19 09:00 PM Interest Rate Decision 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 45.00 100.00 25.00 percent [+]
Money Supply M0 263342.86 275056.18 296755.46 0.00 BRL Million [+]
Money Supply M1 333043.71 330604.94 363025.90 0.00 BRL Million [+]
Money Supply M2 2492743.34 2455791.49 2492743.34 0.01 BRL Million [+]
Money Supply M3 5917453.39 5856815.13 5917453.39 0.01 BRL Million [+]
Foreign Exchange Reserves 379979.00 379577.00 381843.00 1187.00 USD Million [+]
Banks Balance Sheet 5920108.90 5859139.10 6004329.00 1174638.70 BRL Million [+]
Loans to Private Sector 685049.00 691094.00 875284.00 169316.00 BRL Million [+]
Deposit Interest Rate 12.40 12.62 9394.29 7.81 percent [+]
Loan Growth 0.60 -0.20 3.68 -1.01 percent [+]
Central Bank Balance Sheet 3175974117.00 3119265914.00 3175996667.00 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 May of 2018.

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




interest rate by Country
Country Last
Turkey 8.00 Apr/18
Mexico 7.50 May/18
Russia 7.25 Apr/18
Brazil 6.50 May/18
India 6.00 Apr/18
Indonesia 4.50 May/18
China 4.35 Apr/18
United States 1.75 May/18
Australia 1.50 May/18
South Korea 1.50 Apr/18
Canada 1.25 Apr/18
United Kingdom 0.50 May/18
Euro Area 0.00 Apr/18
France 0.00 Apr/18
Germany 0.00 Apr/18
Italy 0.00 Apr/18
Netherlands 0.00 Apr/18
Spain 0.00 Apr/18
Japan -0.10 Apr/18
Switzerland -0.75 Apr/18


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