The Central Bank of Brazil voted unanimously to hold its key Selic rate at a record low of 6.50 percent on May 8th 2019, as widely expected. Policymakers said that the decision is consistent with the convergence of inflation to the target range and will continue to depend on the evolution of economic activity, inflation outlook and balance of risks. The Committee added that developments of the reform agenda will affect current expectations and macroeconomic projections. Interest Rate in Brazil averaged 14.93 percent from 1999 until 2019, reaching an all time high of 45 percent in March of 1999 and a record low of 6.50 percent in March of 2018.
Interest Rate in Brazil is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Brazil to stand at 7.25 in 12 months time. In the long-term, the Brazil Interest Rate is projected to trend around 8.00 percent in 2020, according to our econometric models.