Official announcement from the Central Bank of Brazil

Brazil's Central Bank Lifts Selic to 12.25% in Final 2024 Meeting, Exceeding Expectations

Dec 11, 2024, 09:39 PM

The Central Bank of Brazil's Monetary Policy Committee (Copom) raised the benchmark Selic interest rate by 1 percentage point to 12.25% per annum in a unanimous decision on Wednesday, December 11, 2024. The move, made during the last meeting of the year, marks the third consecutive hike, accelerating the pace of monetary tightening amid escalating inflationary pressures. The increase surpassed market expectations of a 0.75 percentage point rise to 12%. The previous rate hike was in November when the Selic reached 11.25%. Brazil now holds the second-highest real interest rate globally. Inflation has exceeded targets in ten major cities, prompting the Copom to act decisively to curb price growth. The hike from the previous rate signals potential future increases as the Central Bank continues to combat rising inflation. Analysts suggest that further rate hikes may be forthcoming in subsequent meetings.