Brazil cuts interest rate 50 basis points to 11.75%

ISTANBUL

Brazil’s central bank lowered its benchmark interest rate by 50 basis points on Wednesday to 11.75% — its fourth consecutive rate cut.

“The global environment remains volatile and is less adverse than in the previous meeting, with a reduction in longer-term interest rates in the United States and some incipient signs of lower core inflation, despite remaining at high levels in many countries,” the bank said in a statement.

“Regarding the domestic scenario…headline consumer inflation, as expected, remains in a path of disinflation, and various measures of underlying inflation are closer to the inflation target in recent releases,” it added.

The central bank, in addition, said its monetary policy committee members “unanimously anticipate further reductions of the same magnitude in the next meetings.”

Banco Central Do Brasil last implemented a rate hike of 50 basis points in August 2022, bringing the rate to 13.75%, the highest since early 2017 and up sharply from a record low of 2% in March 2021.

The central bank lowered its interest rate by 50 basis points to 13.25% in early August, its first rate cut in three years.

Brazil’s annual consumer inflation slowed to 4.68% in November from the 4.82% annual increase seen in October.

Inflation is expected to average 4.6% in 2023 and 3.5% in 2024, according to the bank’s committee.

• Banco Central Do Brasil
• Brasil
• Inflation
• Interest Rate
• rate cut