The Central Bank's Monetary Policy Committee (COPOM) will open its third meeting of the year on Tuesday (April 11) to discuss Brazil's benchmark interest rate (SELIC), which is currently at 12.25% per annum. The outcome will be announced after the second day of the meeting on Wednesday (12).

As inflation slows down, the Central Bank has hinted it could make larger interest cuts. In February, the COPOM announced the fourth consecutive cut—0.75 percentage points, taking the rate to 12.25% p.a. from a previous 13%. It was the second straight time the bank slashed 0.75 percentage points from the rate.

Interest cuts boost the economy by encouraging production and consumption financing when economic activity is slow.

The meeting

On the morning of the first day of the meeting, Central Bank Governor Ilan Goldfajn and members of the bank's board carry out market analyses. In the afternoon, they discuss the economic scenario. On the second day, after discussing the outlook for inflation, the board agrees an interest rate and announces its decision to the market.