The nine members of the Brazilian Central Bank’s Monetary Policy Committee (Copom) decided unanimously, yesterday, July 20, to maintain the government’s annualized benchmark interest rate at 19.75%.
The so-called Selic rate is used as a benchmark for bank loans, and over half of the Brazilian government’s domestic debt is pegged to the Selic.
“After evaluating the prospects for the trend in inflation, the Copom decided, unanimously, to maintain the annualized Selic rate at 19.75%,” the Committee says in its note.
To calculate the Selic, the Copom takes into account various factors, including the outlook for future inflation (the next 30 days) and momentary upward or downward price tendencies in the economy.
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