Brazilian Selic Interest Rate Hiked to 13.25% from 12.25% – Currency Thoughts

Brazilian Selic Interest Rate Hiked to 13.25% from 12.25%

January 30, 2025

The Central Bank of Brazil’s Selic interest rate was hiked by another full percentage point, matching the increase made at December’s meeting and bringing the cumulative rise since September to 275 basis points. At 13.25%, the new rate level is its highest since August 2023 and just 50 basis points below the cyclical peak of 13.75% maintained from August 2022 until August 2023. Brazilian consumer price inflation had receded from 12.1% in April 2022 to 3.7% one year later but then rose to a 14-month high of 4.87% in November and stayed near that level last month. A released statement says, “In light of the continuation of the adverse scenario for inflation convergence, the Committee anticipates another adjustment of the same magnitude in the next meeting, if the scenario evolves as expected.”

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Central Bank of Brazil

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