* The monetary policy committee of Brazil’s central bank (Copom) has announced that it is lowering the benchmark interest rate (Selic) from 12.75% to 12.25%. This marks the third consecutive meeting in which Copom has decided to lower the Selic by 0.50 percentage points. In its latest press release, the committee indicated that more “reductions of the same magnitude” could be made in the next meetings if the disinflationary process continues as expected. Copom’s annual inflation forecast for 2023 has also decreased since its last meeting which concluded on 20 September. The projection has been lowered from 5.0% to 4.7%, a new forecast which is within the central bank (BCB)’s 2023 annual inflation target range of 3.25% +/-1.5. Private sector analysts consulted by the BCB, whose economic forecasts are published in the BCB’s weekly Focus bulletin, last published on 30 October, predicted an even lower annual inflation rate of 4.63% for 2023.
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LatinNews Daily - 2 November 2023
In brief: Brazil’s central bank cuts interest rates for third consecutive time
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