The Central Bank of Brazil raised the rate by 1 percentage point

Brazil held a regular meeting of the Central Bank. Its participants assessed the situation in the country’s economy. All members of the bank’s board agreed on the need to raise the key rate. It was increased by 1 p.p. to the level of 11.75%. Analysts who took part in the survey expected just such a decision from the Brazilian Central Bank. The Central Bank of the country began to tighten its policy a year ago. Then the key rate was at the level of 2%, which is a record low for the country. Over the past period, the regulator made a decision to raise the base rate 9 times. The bank’s statement, released after the meeting, notes that this is not the last rate increase. With a high probability, it will again be increased by 1 p.p. following the next meeting. Much will depend on the dynamics of inflation. Its target value, set by the Central Bank of Brazil, is 5%. According to the latest data from the country’s statistics office, consumer prices rose by 10.5%.

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Arseny Kudrin

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