Brazilian Interest Rate Hike – Currency Thoughts
Brazilian Interest Rate Hike
June 19, 2025
The Central Bank of Brazil’s Selic interest rate was increased by another 25 basis points to 15.0%, which represents its greatest elevation in a little more than a decade. The vote was unanimous, and the new rate is up from 10.5% as recently as last September. Brazilian CPI inflation of 5.3% last month and measures of expected inflation are each above target. A released statement from the monetary policy committee suggests a pause now but doesn’t rule out further hikes in the future: “the Committee foresees an interruption of the rate hiking cycle to examine its yet-to-be-seen cumulative impacts […] It will not hesitate to proceed with the rate hiking cycle if appropriate.”
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Brazil
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