Brazil Denies Plan to Cap Interest Rates
Brazil’s finance minister rejects a cap on interest rates a day before the central bank meets. Here is what the 13.75% Selic and the odds say for US investors. The post Brazil Denies Plan to Cap Interest Rates appeared first on The Rio Times .
Brazil's Finance Minister Dario Durigan has denied rumors that the government is considering capping or freezing the Selic interest rate. The Selic, Brazil's benchmark rate, influences borrowing costs across the country's economy. However, Durigan stressed that the central bank, not elected officials, will decide the Selic rate.
The central bank has already cut the Selic rate five times since the start of the year, reducing it to 13.75%. The next decision on the Selic rate is set for November 4th, amidst political pressure. The central bank's decision will have implications for Brazilian bonds, which offer one of the world's highest yields, and ADR holders of Brazilian firms such as Itaú, Petrobras, and Vale.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
