The Selic rate is the Central Bank's main instrument for keeping official inflation under control, as gauged by the Broad National Consumer Price Index.
The Central Bank's Monetary Policy Committee (Copom) reduced the Selic rate—Brazil’s benchmark interest rate—by 0.5 percentage points, to 11.75 percent a year.
The Monetary Policy Committee of the Brazilian Central Bank expressed its intention to continue making further 0.5-point reductions in the upcoming meetings.
According to the Focus Bulletin, market estimates now predict a year-end inflation rate of 4.84 percent, an improvement from the previous estimate of 4.98 percent.
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.