Brazil raises rate 75bp to 10.25%
For the second time in a row, Brazil’s central bank has raised the Selic target rate by 75bp, as the economy expands rapidly and fears of inflation mount.
Historically, interest rates in the country are still low (see chart). Rates were last at 10.25 per cent in April of last year. The inflation target is currently 4.5 per cent +/- 2 per cent, and the data to May was rising, but within target, at 5.17 per cent.
Related reading: Brazil’s inflation fight (June 4)
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