11 Oct 2012
Another interest rate reduction in Brazil
The central bank lowers the leading interest rate by 0.25 %-points
The central bank, Banco Central do Brasil, lowered on Wednesday the leading Selic interest rate by 0.25 %-points. Thereby, the Selic rate is now 7.25% p.a. The current interest rate level is historically low and contributes to stimulating the Brazilian economy to cope with the challenging world economic growth climate.
The interest rate has been lowered by more than 5% points since August 2011. The large rate cuts have been made possible by a relatively stable inflation rate. The previous rate cuts have been by at least 0.5% points each time, which is why Wednesday's more moderate change indicates that the interest rate reduction is coming to an end.
Development in the Selic rate, 2005-2012