To 13.25%: the Central Bank of Brazil cuts interest rates by 0.5 points – 08/03/2023 – Economy

2023-08-03 18:45:00

The Copom (Monetary Policy Committee) of the Central Bank announced this Wednesday (2) the first reduction in interest rates in the government of Luiz Inácio Lula da Silva (PT), with the drop in the basic index (Selic) by 0.5 percentage points —going from 13.75% to 13.25% annually. The magnitude of the easing generated discrepancies and the final score was adjusted (5 to 4), but the directors were unanimous in forecasting new drops of 0.5 points for future meetings.

With this decision, the Central Bank opens the monetary easing cycle three years after the last downward movement in basic rates. In August 2020, Selic reached a record low of 2% in the midst of the Covid-19 pandemic.

Translated by AZAHARA MARTIN ORTEGA

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