The measure aims to contain inflation in an international context that the agency described as “particularly uncertain.”
He Central Bank of Brazil decided on Wednesday to raise the Basic Interest Rate (SELLIC) of the 14.75% to 15% per yearthus reaching its highest level from May 2006. The measure aims to contain inflation in an international context that the agency described as “Particularly uncertain”.
It is about Seventh consecutive increase In the reference rate, although the adjustment was more moderate than the previous one, which had been 50 basic points. On this occasion, the decision was adopted by unanimity by monetary authority.
External and internal context under pressure
In its statement, the Central Bank said that the international scenario continues to be challenging, with special attention to the situation in USAmarked by uncertainty in fiscal and commercial matterswhat – according to warned – conditions the financial environment of Brazil.
At the local level, the issuer acknowledged that, although the Economic activity and labor market show some vitalitya Growth slowdown and one persistent inflation above the official objective. Currently, inflation is located in 5.32% year -on -yearabove upper limit of 4.5%.
The fiscal situation It was also pointed out as a factor of pressure on prices and expectations.
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Brazil: The Central Bank will evaluate a pause in future increases
The Central Bank Board of Directors justified the new adjustment as a tool for gradually bring inflation to your goal And he anticipated that, if the indicators accompany, A pause in the upward cycle could be evaluated.
“It will be necessary to observe the accumulated impacts of the adjustment already carried out, which have not yet been fully reflected in the economy,” said the entity, while remarking that maintaining the rate at the current level for a prolonged period It could be enough to guarantee the convergence of inflation.
According to official projections, inflation would close 2025 in 4.8%in line with the data of 2024 (4.83%), but still slightly above the objective.
Source: Ambito
