Official inflation statistics released by the Brazilian Institute of Geography and Statistics (IBGE)

Brazil's Central Bank Hikes Selic Rate by 100 Basis Points to 12.25% Amid Inflation Concerns

Dec 11, 2024, 09:36 PM

The Brazilian Central Bank's Monetary Policy Committee (Copom) has concluded its final meeting of the year, deciding to increase the country's benchmark interest rate, the Selic, by 1 percentage point to 12.25% per annum. This adjustment comes after the previous rate hike in November, which brought the Selic to 11.25%. The decision was influenced by inflation surpassing targets in 10 Brazilian capitals, signaling a need for tighter monetary policy. The hike places Brazil as the second-highest in real interest rates globally, just before the Copom's decision. Market expectations were for a 0.75 percentage point increase, but the committee opted for a more aggressive approach, raising the rate by 100 basis points.