Brazil Central Bank Says 12.75% Rate Enough to Tame Inflation

Brazil’s central bank chief, Roberto Campos Neto, reiterated that a Selic benchmark rate of 12.75% should be enough to bring inflation expectations to target within a relevant horizon, according to a TV interview broadcast on Sunday.

Policy makers have added 975 basis points to borrowing costs since last March, the world’s most aggressive tightening cycle in the wake of the pandemic, to 11.75% and pledged to further increase the Selic rate to 12.75% by May.