After nine consecutive increases, the Central Bank has decided to break its monetary tightening stance. The Monetary Policy Committee (COPOM), a board of the bank's directors, has unanimously decided to maintain the base interest rate (SELIC) at 11% per annum.

This was the first time in 13 months that the COPOM has refrained from adjusting the SELIC rate.The committee explained that the decision was based on the macroeconomic trend and the outlook for inflation. Still, the SELIC rate remains at a peak since November 2011, when it was at the same level of 11%.

The cycle of high base interest rates started in April 2013 with 7.25%, as an attempt to contain inflationary pressures.

The SELIC rate is used by the Central Bank as Brazil's monetary policy maker to control the official inflation rate measured by the National Broad Consumer Price Index (IPCA) by keeping it within the target of 4.5% (mid target range), with a sample margin error of plus or minus two percentage points (2.5%-6.5%).

In April, the Brazilian Geography and Statistics Institute (IBGE) reported a cumulative IPCA index of 6.28% for the past 12 months. Now, the financial institutions estimate that it will close out 2014 at 6.47% according to the Central Bank's Focus weekly report.