He Central Bank of Brazil left Wednesday unchanged his interest rate of reference, for the seventh consecutive meeting, but adopted a more moderate message about its future steps by excluding from its statement of monetary politics the possibility of upcoming increases in the cost of credit.
After more benign inflation data and progress in Congress on new budget rules, the central bank’s monetary policy-setting committee, known as Copom, decided to maintain its Selic rate. at a six-year high of 13.75%, in line with the expectations of 47 economists polled by Reuters.
A change in the central bank’s stance has been eagerly awaited since the May meeting in which interest rates were set, while Congress moved forward with the approval of new budgetary rules to curb the increase in public debt.
Improving risk perception under the new Brazilian government, which S&P Global Ratings cited last week, raising to “positive” The country’s credit outlook has pushed down interest rate futures and boosted the Brazilian real.
The local currency has strengthened 6% against the American dollar in the last three weeks.
In the current economic context, more and more business leaders have echoed the insistent requests of President Luiz Inácio Lula da Silva to lower interest rates.
Since taking office in January, the president has criticized the central bank for keeping rates stable despite cooling inflation, warning the institution that it was hampering economic growth.
Source: Reuters
Source: Gestion
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