Economics
Brazil Doubles Down on Plans to Keep Key Rate at Record Low
- Policy makers held Selic at 2% after nine consecutive cuts
- Industry output and retail sales have powered back on stimulus
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Brazil plans to hold interest rates at a record low for the foreseeable future, with policy makers describing price pressures that emerged during the economic recovery as just temporary.
The central bank, led by Roberto Campos Neto, held the Selic rate at 2% on Wednesday after cutting 450 basis points from borrowing costs during the previous nine meetings. While temporary increases to food prices will drive short-term inflation, slack persists in the services sector, policy makers said, reaffirming their previous guidance on rates.