Central Banks
Brazil to Hold Key Interest Rate Steady as Fiscal Debate Starts
- Nearly all economists in Bloomberg survey see Selic unchanged
- Central bank chief defended 13.75% rate before lawmakers
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Brazil’s central bank will likely hold its interest rate steady for the sixth straight meeting on Wednesday, as congress prepares to debate President Luiz Inacio Lula da Silva’s proposal to manage public finances and tame debt.
All but one economist in a Bloomberg survey expect board members to keep the benchmark Selic unchanged at 13.75%, while the remaining analyst sees a quarter-point cut to 13.5%. Policymakers led by Roberto Campos Neto have held rates steady since September, after an aggressive tightening cycle that added 11.75 percentage points to borrowing costs.