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Brazil cuts the Selic rate to 13.75 per cent

Copom cut the policy rate by 0.25 percentage points from 14 per cent to 13.75 per cent on 16 September, the fifth consecutive cut since March. SBT News says the fifth 0.25-point cut of the year matched market expectations.

Economics & Markets··Morning
An empty circular policy table in a Brasilia-like room, Brazilian flag in the corner, no people.

A unanimous fifth cut since March

Brazil's Monetary Policy Committee (Copom) cut the Selic rate by 0.25 percentage points on the evening of 16 September, from 14 per cent to 13.75 per cent. Estadão reported the decision was unanimous and matched the call of 75 of 78 houses in the Projeções Broadcast survey. It was the fifth consecutive cut in the calibration cycle that began in March, taking the cumulative easing to 1.25 percentage points. The committee said the decision was compatible with inflation converging toward the target over the relevant horizon.[1]

The fifth 0.25-point cut of the year

SBT News reported that Brazil's Monetary Policy Committee cut the basic interest rate to 13.75 per cent a year. The page says the committee delivered the fifth 0.25 percentage-point cut of the year, matching market expectations.[2]

13.75 per cent is the new Selic print

Estadão and SBT News both put the new Selic at 13.75 per cent after a 0.25-point cut. Estadão adds the unanimous board, the 75-of-78 survey match and the 1.25-point cumulative easing since March. SBT News adds that the fifth 0.25-point cut of the year was the market's expected print.[1], [2]

References

  1. News sourceEstadãoBrazil's central bank cuts the Selic rate to 13.75 per cent↩1↩2
  2. News sourceSBT NewsBrazil's central bank cuts the Selic rate to 13.75 per cent↩1↩2
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