Brazil’s central bank raised interest rates by 100 basis points for the third consecutive time, raising the Selic rate to 14.25%. The decision was unanimous and follows prior guidance, with indications of smaller future rate hikes as the bank reviews economic conditions.

Brazil’s central bank has increased interest rates by 100 basis points, marking the third consecutive hike. This decision aligns with prior guidance and reflects the central bank’s intention to monitor potential signs of an economic slowdown. The bank’s rate-setting committee, known as Copom, raised the Selic rate to 14.25%, a level not witnessed since 2016. The move was unanimously supported by the committee and is consistent with the predictions from 37 economists surveyed by Reuters.

In summary, Brazil’s central bank has raised interest rates by 100 basis points to 14.25% for the third time. This action signifies the bank’s cautious approach amid economic slowdown concerns, with indications of smaller rate hikes anticipated in the future. The decision received unanimous support from the rate-setting committee and aligns with economic forecasts.

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