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.
According to Brazil’s National Industry Confederation, the growth shows that the index is moving away from the threshold separating confidence from lack of confidence.