Brazil Leaves Key Rate Steady at 14.25%
Brazilian central bank left the benchmark Selic rate unchanged at 14.25 percent at its October 2015 meeting, saying keeping rates at current level for a sufficiently prolonged period is necessary to bring inflation back to target. The decision came in line with market expectations.
10/21/2015 11:56:02 PM
The Selic rate was left on hold for the second straight meeting, following a rate-hike campaign initiated last year that brought borrowing cost up to a nine-year high, aiming to curb rising prices.
However, poliymakers are struggling with stubbornly high inflation and a deep recession. The economy contracted sharply by 1.9 percent on quarter and by 2.6 percent year-on-year in the April-June period, due to a slump in private consumption and investment. Although the inflation rate slowed to 9.49 percent in September, it accelerated to 9.77 percent in the month to mid-October, the highest in nearly 12 years. In addition, the Brazilian real already lost more than 40 percent to the USD so far this year.