Brazil Leaves Monetary Policy Unchanged

At its September meeting, Central Bank of Brazil decided to leave its key selic rate steady at 11 percent as widely expected.

Policymakers left the benchmark interest rate on hold for the third straight meeting, as previous monetary tightening is believed to drag inflation down. The central bank raised the selic rate nine times from April of 2013 to April of 2014 aiming to curb high inflation amid weak growth. 

The economy contracted 0.6 percent in the second quarter of 2014, hurt by a fall in investment and government expenditure, but the annual inflation rate slowed for the first time in six months to 6.5 percent in July due to lower transport cost.

The central bank said the decision was unanimous.

Brazil Leaves Monetary Policy Unchanged

Joana Taborda |
9/3/2014 11:48:35 PM