Brazilian Central Bank keeps annual basic interest rate at 6.5 pct

Source: Xinhua | 2019-06-21

The Brazilian Central Bank's Monetary Policy Committee (Copom) announced on Wednesday their decision to maintain the country's annual basic interest rate Selic at 6.5 percent.
It was the tenth consecutive time the Selic rate is being maintained at this level -- the rate has not been changed since March 2018. The Selic rate's current level is record low.
The decision to maintain the rate at its current level was expected by the market. In the latest Focus market survey carried out by the Central Bank among economists from Brazilian financial institution, the interviewees believed that the rate would not be adjusted this week.
But in the same survey, economists estimated that the rate will fall during the year, reaching 5.75 percent by the end of 2019.
The Copom considered that the situation of the national economy has worsened and the process of economic recovery in Brazil has halted, but that growth will resume gradually. The global situation, on the other hand, has improved, but risks associated to lower growth rates remain.