The Central Bank confirmed projections for the stock market and keeps the SELIC rate, which represents the economy's benchmark interest, at 11% per annum. The decision was made unanimously and was announced by the bank's board of directors on Wednesday (Sep 3).

The increasing basic interest rate was brought to a halt in May by the bank after nine months on the rise.

In a statement, the bank says the decision to maintain the rate considered the evolution in the macroeconomic scenario as well as predictions for the inflation. The analysts heard by the Central bank believe the rate will close out the year unaltered.

The SELIC is used by the Central Bank to keep the official inflation rate (“IPCA”) within the target of 4.5% per annum, plus or minus two percentage points.

In July, the IPCA stood at 6.5% in 12 months, reaching the ceiling set by the bank.