Brazil Raises Selic Rate to 11%
At its April 2nd, 2014 meeting, the Central Bank of Brazil raised the benchmark interest rate by 25 bps to 11 percent, as widely expected, after a surge in food prices.
4/3/2014 12:10:28 AM
The central bank said the decision was unanimous.
At its February meeting, policymakers signalled that monetary tightening was nearly done, but a severe drought in the country’s southeast raised food prices.
In February of 2014, Brazilian annual inflation rate accelerated to 5.68 percent from 5.59 percent in the previous month. In the twelve months to mid-March, higher food cost pushed consumer prices up to 5.90 percent.
Last week, Brazil's central bank increased its forecast for inflation in 2014 to 6.1 percent from a previous estimate of 5.6 percent. It forecasts GDP growth to be 2 percent in 2014.
The Copom also said it will monitor the evolution of the macroeconomic scenario until its next meeting, to then define the next steps in its monetary policy strategy.