Brazil Central Bank Holds Interest Rate at 15% and Keeps Guard Up Against Inflation Risks

Brazil’s central bank held its interest rate steady at a nearly two-decade high, signaling there’s no change in sight to the current level of borrowing costs as policymakers keep their guard up against inflation risks.

Board members led by Gabriel Galipolo kept the benchmark Selic at 15% for the second straight meeting late on Wednesday, as expected by all economists in a Bloomberg survey. In an accompanying statement, they wrote that the local labor market is showing strength, current inflation levels are above target and future consumer price expectations are unanchored.