“We’re at a moment when we can make the economy grow, and we still have a lot of monetary fat to burn. We still have a [benchmark interest] rate of 12.25% [a year],” Finance Minister Fernando Haddad said at an event held by the BTG Pactual bank Monday.
This is the second time in six months the Selic rate is decreased. As at the previous meeting, the financial institution stated it should continue to make reductions of the same intensity in the future.
Its Monetary Policy Committee the Selic at 13.75% a year. Brazil’s benchmark interest rate has stood at this level since August 2022, the highest since January 2017.
Despite the drop in inflation and pressures from members of the government, the Monetary Policy Committee decided to maintain the Selic rate unchanged for the seventh consecutive time.
The Central Bank’s Monetary Policy Committee meet in Brasília for the fourth meeting of the year to define the Selic rate. No cuts in the rate are expected, as per the minutes from the last meeting, in May.