Skip to content
Markets
Economics

Brazil Central Bank Signals Reduction in Pace of Rate Increases

The Central Bank of Brazil in Brasilia.

The Central Bank of Brazil in Brasilia.

Photographer: Andressa Anholete/Bloomberg

Brazil’s central bank signaled that it sees a reduction in the pace of interest rates adjustments after announcing Wednesday an increase of 150 basis points in the country’s borrowing costs to 10.75%. 

“For its next steps, the Committee foresees as adequate, at this moment, a reduction in the pace of adjustment of the interest rate,” the central bank said in a statement after the decision. “This indication reflects the stage of the tightening cycle as its cumulative effects will manifest themselves over the relevant horizon.”