Brazil Holds Rate at 11%

At its July meeting, Central Bank of Brazil decided to leave its key selic rate on hold at 11 percent, amid weak growth and after inflation hit the upper limit target range.

After raising the selic rate nine times since April of 2013, the central bank decided to leave the selic rate unchanged for the second straight meeting, as the current policy stance is considered appropriate to bring the annual inflation rate back to the target range (4.5 percent plus or minus 2 percent).

In June, the inflation rate accelerated for the fifth straight month to 6.52 percent from 6.37 percent in May. However, on a monthly basis, consumer prices rose 0.4 percent, the lowest rate in nine months.

The central bank said the decision was unanimous.

Brazil Holds Rate at 11%

Joana Taborda |
7/17/2014 12:23:06 AM