From Agência Brasil · · 1m
Brazil’s Central Bank Holds Interest Rate at 13.75%
Brazil’s Central Bank keeps benchmark interest rate unchanged at 13.75% per year amid inflation and economic uncertainty.
In brief
Brazil’s Central Bank keeps benchmark interest rate unchanged at 13.75% per year amid inflation and economic uncertainty. Brazil’s Central Bank maintained its benchmark interest rate at 13.75% per year to address rising inflation and economic challenges. Originally reported by Agência Brasil.
Central Bank Decision
Brazil’s Central Bank Monetary Policy Committee unanimously decided to keep the Selic benchmark interest rate unchanged at 13.75 percent per year.
“Brazil’s Central Bank Monetary Policy Committee (Copom) unanimously decided to keep the Selic, the country’s benchmark interest rate, unchanged at 13.75 percent per year”
Inflation Context
Inflation expectations remain above target as the IPCA-15 index rose to 0.32 percent in October.
“In October, the IPCA-15, a preview of the official index, stood at 0.32 percent, driven by a decline in electricity bills”
Inflation Target
The Central Bank targets 3 percent inflation with a tolerance band of 1.5 percentage points above or below.
“Under the continuous inflation-targeting system, which took effect in January 2025, the Central Bank is required to pursue an inflation target of 3 percent, as established by the National Monetary Council (CMN), with a tolerance band of 1.5 percentage points above or below the target”
Rate History
The Selic rate was 15 percent from June 2025 to March 2026, its highest in nearly 20 years.
“From June 2025 to March 2026, the Selic rate stood at 15 percent per year, its highest level in nearly 20 years”
Current Challenges
El Niño, Middle East tensions, and exchange-rate volatility prompted a more cautious monetary stance.
“Escalating tensions in the Middle East, the onset of El Niño, and recent exchange-rate volatility have prompted the Central Bank to adopt a more cautious stance”
Next Steps
The Central Bank expects inflation to remain above target through 2026 with no rate changes expected soon.
“The next edition of the report is scheduled for release later this month”
The key point
Brazil’s Central Bank maintained its benchmark interest rate at 13.75% per year to address rising inflation and economic challenges.
