The Central Bank of Brazil voted unanimously to hold its key Selic rate at a record low of 6.50 percent on 19 June 2019, as widely expected. The Committee underscored that recent data on economic activity indicate a halt in the process of economic recovery in the past quarters. The economic recovery is still taking longer than expected, with recent negative data. The Brazilian economy shrank 0.2 percent on quarter in the first quarter of 2019, slowing from a 0.1 percent expansion in the previous period. Interest Rate in Brazil averaged 14.90 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 5.75 in 12 months time. In the long-term, the Brazil Interest Rate is projected to trend around 6.50 percent in 2020, according to our econometric models.