Central Bank indicated that it is likely to implement another 0.5 percentage point reduction at its next meeting in May. This raises the possibility that the committee will pause the cycle of rate cuts starting from June onwards.
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 Selic rate is the Central Bank's main instrument for keeping official inflation under control, as measured by the Broad National Consumer Price Index (IPCA).
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.