Copom cuts basic interest rate to 13.75% per year
Monetary Policy Committee (Copom) maintains the cycle of cuts in the economy's basic interest rate, the Selic. Read on Gazeta do Povo.
TL;DR
- Brazil's Copom cut the Selic rate by 0.25 percentage points to 13.75% annually.
- This is the fifth consecutive interest rate cut by Brazil's central bank.
- Copom expressed caution about future decisions, emphasizing the need for more data to ensure inflation converges to the target.
- The U.S. Federal Reserve raised its interest rate by 0.25 percentage points to 3.75%-4% annually.
- This is the first rate hike by the Fed since July 2023, driven by persistent inflation.
- The Fed noted that inflation remains elevated and the move will help return it to the 2% target.
- U.S. job creation was strong, with the unemployment rate unchanged.
- The Fed's decision comes before U.S. midterm elections, with President Trump advocating for lower interest rates to stimulate growth.