Copom also announced it should pull up the Selic by 1.5 percentage points at its next meeting, in December. The value is at its highest since October 2017, when it reached 8.25 percent a year.
In a statement, the Central Bank declared it should elevate the Selic rate by 0.75 percentage points at the next Copom meeting, on June 15 and 16.
For 2021, the National Monetary Council (CMN) set the inflation target at 3.75 percent, with a tolerance margin of 1.5 percentage points. The IPCA, therefore, must not exceed 5.25 percent this year, or go below 2.25 percent.
Brazil’s Central Bank for the fifth consecutive time has lowered the economy’s benchmark interest rate, known as Selic, to 4.25 percent a year, down 0.25 percentage points. The rate serves as a reference for other interest rates in the economy.
For the fourth consecutive time, the Brazilian Central Bank lowered the economy’s benchmark interest rate. Its committee unanimously decided to reduce the Selic rate to 4.5 percent a year, a 0.5 percentage point cut. The move had been expected by analysts.