Brazil's basic interest rate raised to 10% per year

Criado em 28/11/13 10h16 e atualizado em 28/11/13 10h18
Por Stênio Ribeiro Fonte:Agência Brasil

Brasília – The Central Bank's Monetary Policy Committee (Copom) has raised the basic interest rate (Selic) from 9.5% to 10 % per year as of Wednesday (Nov. 27). It has been the sixth successive increase since April, when the rate was 7.25% – its lowest level since the committee was established in June 1996.

The 0.5 percentage point increase was expected by financial analysts polled by the Central Bank on a weekly basis. Moreover, the minutes of the past few Copom meetings already suggested a tendency to maintain the monetary tightening process.

The decision reaffirms the bank's inclination to continue raising the interest rate with an aim to curbing consumer demand in the domestic market and containing inflationary pressures in view of a 12-month accumulated rate of 5.84%.

According to the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), each 0.5 percentage point increment in the Selic rate is roughly equivalent to an increase of $1.3 billion a year in Brazil's public debt, worth $876.92 billion in October.

Edited by Aécio Amado / Nira Foster
Translated by Mayra Borges

Dê sua opinião sobre a qualidade do conteúdo que você acessou.

Para registrar sua opinião, copie o link ou o título do conteúdo e clique na barra de manifestação.

Você será direcionado para o "Fale com a Ouvidoria" da EBC e poderá nos ajudar a melhorar nossos serviços, sugerindo, denunciando, reclamando, solicitando e, também, elogiando.