Central Banks

Brazil Holds Interest Rate at 13.75% Before Presidential Runoff Vote

  • Policymakers stay on hold for second straight meeting
  • Monthly inflation is accelerating as impact of tax cuts wane

Central Bank of Brazil headquarters in Brasilia. 

Photographer: Gustavo Gomes/Bloomberg
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Brazil’s central bank held its key interest rate steady for the second straight meeting, warning inflation is still running high and that the global outlook remains volatile.

The bank kept the Selic unchanged at 13.75% on Wednesday, as expected by all 48 analysts surveyed by Bloomberg. Last month, it paused a year-and-a-half long tightening cycle that had raised rates from a record low of 2%.