Selic Rate Falls to 13.75% Hours After the Fed Raises American Rates
Brazil cut its Selic rate to 13.75 percent on Wednesday evening, a fifth straight quarter-point move, hours after the Federal Reserve raised its own. The post Selic Rate Falls to 13.75% Hours After the Fed Raises American Rates appeared first on The Rio Times .
On Wednesday, Brazil's central bank reduced the Selic rate by 0.25 percentage points to 13.75%, marking the fifth consecutive cut this year. The decision came a day after the US Federal Reserve raised its target rates by 0.25 percentage points to between 3.75% and 4%, signaling a divergence in monetary policy between the two nations.
The Brazilian central bank cited uncertainty, expectations drifting away from the target, and the need for serenity and caution in its statement, emphasizing that the current scenario demands caution. The Selic rate has decreased by a full 1.25 percentage points since March, with the committee emphasizing a deliberate pace driven by caution.
Brazilian consumer prices fell by 0.32% in August, and inflation stands at 4.22%, above the target of 3% with a tolerance band of 1.5 points. Economists surveyed by the central bank expect inflation to reach 4.9% in 2026, reinforcing the view that Wednesday was likely the last rate cut for the year.
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