Copom reduces Selic rate to 8,5%, the lowest level since 1999.
The seventh consecutive reduction, of 0,5 percentage points, was in line with the expectations of most financial analysts, as shown in the Focus bulletin, released by the Central Bank last Monday.
Agency Brazil – The Monetary Policy Committee (Copom) of the Central Bank (BC) reduced, today (30), to 8,5% per year the basic interest rate that remunerates public securities deposited in the Special System of Settlement and Custody (Selic). It is the lowest level of the Selic rate since the current monetary policy was adopted, at the beginning of 1999.
The reduction came in line with the expectations of most financial analysts, as shown in the Focus bulletin, released by the BC last Monday (28).
This was the seventh consecutive reduction in the benchmark interest rate, which reached 12,5% in July of last year, began to decline the following month, and has since fallen 4 percentage points.
Due to the long process of easing monetary policy, which has already lasted ten months, as a way to stimulate domestic consumption and reactivate the economy, most financial analysts believe that the process of reducing the Selic rate should also continue at the next Copom meeting, scheduled for June 10 and 11.
Despite inflation remaining above the central target set by the National Monetary Council (CMN), of 4,5%, analysts believe that the basic interest rate will fall to 8%, remaining at that level in the medium term, with the possibility of rising again in 2013 – to around 9,5%.
This Wednesday's meeting was the first in which the directors' votes were made public, as mandated by the Access to Information Law, which came into effect two weeks ago.