Economy

Monetary Policy Committee raises Selic to 11% per year

Brazil Agency
03/04/2014 19:21
Monetary Policy Committee raises Selic to 11% per year Imagem: Deposit Photos Visualizações: 998 (0) (0) (0) (0)

 

For the ninth straight time, the Brazilian Central Bank (BC) adjusted the basic interest rates. Unanimously, the Monetary Policy Committee (Monetary Policy Committee) increased the Selic rate by 0.25 percentage point to 11% per year. It's the highest level since January 2011, a time when President Dilma Rousseff took office, when the rate was at 10.75 % per annum.
In August of that year, the levy was reduced successively by the Monetary Policy Committee to reach 7.25% per annum in October 2012 , the lowest level in history. The Selic rate was maintained at this level until April 2013, when the Monetary Policy Committee began a new cycle high basic interest to curb inflation.
In a statement, the Committee said it will monitor developments in the economy before taking any decision on a possible change in interest rate policy. "The committee will monitor the evolution of the macroeconomic scenario until its next meeting on 27 and 28 May, to define the next steps in its monetary policy strategy ," said the statement.
The Selic rate is the main instrument for BC to keep the official inflation rate, measured by the Brazilian Consumer Price Index (IPCA), within the target set by the economic team. According to the Brazilian Monetary Council (CMN), the inflation target corresponds to 4.5% (target center), with a margin of error of 2 percentage points, ranging between 2.5 % (floor target) and 65% (rate ceiling).

For the ninth straight time, the Brazilian Central Bank (BC) adjusted the basic interest rates. Unanimously, the Monetary Policy Committee (Monetary Policy Committee) increased the Selic rate by 0.25 percentage point to 11% per year. It's the highest level since January 2011, a time when President Dilma Rousseff took office, when the rate was at 10.75 % per annum.


In August of that year, the levy was reduced successively by the Monetary Policy Committee to reach 7.25% per annum in October 2012 , the lowest level in history. The Selic rate was maintained at this level until April 2013, when the Monetary Policy Committee began a new cycle high basic interest to curb inflation.


In a statement, the Committee said it will monitor developments in the economy before taking any decision on a possible change in interest rate policy. "The committee will monitor the evolution of the macroeconomic scenario until its next meeting on 27 and 28 May, to define the next steps in its monetary policy strategy ," said the statement.


The Selic rate is the main instrument for BC to keep the official inflation rate, measured by the Brazilian Consumer Price Index (IPCA), within the target set by the economic team. According to the Brazilian Monetary Council (CMN), the inflation target corresponds to 4.5% (target center), with a margin of error of 2 percentage points, ranging between 2.5 % (floor target) and 65% (rate ceiling).

 

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