Banco Central Brasil has a key interest rate of 10.75% and indicates a reduction in the pace of adjustment

El Banco Central de Brasil raised the Selic rate by 1.5 percentage points per third consecutive year, to 10.75%, continuing the aggressive monetary recovery cycle to contain inflation, indicating a reduction in the pace of adjustment at the Monetary Policy Committee meeting (Copom) in March.

The Central Bank mantuvo, without embarrassment, its position that, in the light of the increase in its projections and the risk of deconstruction of the expectant in more space, it is convenient that the cycle of monetary recourse advance significantly the territory of the contraction.

“In relation to its recent developments, the Committee notes that the most appropriate at this time is to reduce the pace of adjustment of basic interest rates. horizonte correspondiente “, dijo el miércoles la entidad.

The intensity of the increase has been in line with the expectations of the market, according to the median of the Reuters inquiry. Of the 29 economists consulted, 27 provided a subsidy of 1.5 points, an estimate of 1.25 points and another estimate of 1.00 points.

With the decision, the Central Bank April 2022 with the level Selic 8.75 percentage points at the bottom of the 2% annual minimum, level reached in full pandemic and vigilance until March 2021, with a view to reclaiming inflation in the midst of the rapid acceleration of prices in the economy.

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