Brazil Keeps Key Interest Rates for Third Month at 19.75%

Brazil’s Monetary Policy Committee (Copom) decided, unanimously, for the third straight month, to maintain the country’s annualized benchmark interest rate at 19.75%.

In the most recent official acts of the Committee, made public on July 26, the Copom signaled that the Selic would be held at this level for a “sufficiently long period” to ensure the inflation target for 2005, already raised from 4.5% to 5.1%.

Inflationary pressures have already led the Copom to increase the Selic rate between September, 2004 and May of this year. During this period the Selic was raised from 16% to 19.75%.

“Avoiding the possibility of a future acceleration of inflation is crucial for the process of the resumption of economic activity begun in 2003 to continue in a healthy and balanced manner,” the Copom reported in its acts of September, 2004.

The process of raising the interest rate ended in June, reflecting the deflation that occurred in that month. Since then the rate has been kept at the level of 19.75%, with expectations that it will be reduced.

The definition of the benchmark interest rate takes into account factors such as the inflation forecast for the next 30 days and momentary price trends (upwards or downwards) in the economy.

Agência Brasil


  • Show Comments (2)

  • Guest

    i thank u for telling this info that i needed

  • Guest

    And with a Selic rate at 19.75, commercial loans at 40 to 60 % minimum, private loans at between 70 to 140 %… can you pretend and proclaim to the world…that your agriculture is not subsidized at all…when your farmers and agribusiness…can borrow at 8.75 % !!!!!!!

    Are you lying not only to us…but also to yourselves ????

    And for your information two thirds of your subsidized loans go to agribusiness !!!! So you can not even give the excuse it goes only to poors farmers…because even for the farmers part…some go to large farmers.

    Which means…you have a subsizided rate..that the world just envy to have….because between 8.75 % and whatever percentage between 50 and 150 %….makes a big difference… production costs !!!!

    Despite these rates… to Brasilila..2 months ago..pretending they cannot repay loans and asked for help, extensions. Extensions renewed since 1996 !!!

    Strange ? No ?

    After your last 2 booming years…due to prices and your previous currency collapse… should have been easy…to reimburse. A few farmers renewed their machinery….paying in cash…proving it was a golden time. So what did the majority of the others…those still unable to repay ????

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

UN Forces Commander Who Died in Haiti Is Back in Brazil

The body of Brazilian General Urano Teixeira da Matta Bacellar, who commanded the United ...

Paradise Regained

A local from Lagoinha once described it to me as one of those places ...

Cowboy Ronald Reagan and Brazil’s Mystique

Brazil is the last big frontier of retirement for Americans. The city of Barretos ...

Brazil Urged to Repeal Dictatorship-Era Anti-Press Law

Reporters Without Borders called today on Brazil to repeal its press offenses law, which ...

Will Brazil and Portugal Ever Agree on a Common Language?

Brazil and Portugal have signed a few orthographic (spelling) reform agreements in the past, ...

Brazil’s Ethics Council Doesn’t Accept Ex-Chief of Staff Arguments

Brazilian Federal Deputy Júlio Delgado (PSB-Minas Gerais state), reporter of the process to deprive ...

Brazil’s Lula Still Vulnerable Despite End of Investigation into Scandal

Like sunbeams shafting through a thick dark cloud, some scattered rays of morality have ...

In Brazil Fat Compensations May Be Legal, But They Sure Are Immoral

Brazilian judge sets maximum of 2,400 reais (US$ 887) to those granted amnesty – ...

High-Stakes Corruption Case in Brazil Sets Off a Judiciary Civil War

When Opportunity Bank owner Daniel Dantas, mega investor Naji Nahas and former mayor of ...

Venezuelan President Hugo Chávez

Powered by Oil Venezuela and Bolivia Challenge Brazil as Regional Leader

In a single sweep of the pen, Bolivian President Evo Morales has rearranged the ...