Brazil's Central Bank Ends Run of Rate Cuts After Lula Win: Selic Held at 13.75 Percent
Brazil's central bank unanimously voted on November 4 to end a run of interest rate cuts and hold the benchmark Selic rate at 13.75 percent, one of the highest among major emerging economies, after five consecutive 25-basis-point cuts since March.
The decision followed a fall in Brazil's currency and stock market after President Luiz Inacio Lula da Silva's reelection victory over Senator Flavio Bolsonaro in the October 25 runoff, amid fiscal uncertainty ahead of Lula's fourth term. Policymakers raised their inflation forecast for this year to 5.6 percent from 5.2 percent, and for 2027 to 4.7 percent from 3.9 percent.
Finance Minister Dario Durigan said on November 5 that Lula is expected to decide on fiscal measures after returning from a trip to Turkey and the Philippines later this month. Brazil's gross debt has risen to 82.9 percent of GDP, and sources said Lula is expected to reaffirm a commitment to fiscal discipline in a televised address on Sunday.
(Source: Central Bank of Brazil)
Source: Central Bank of Brazil
Published by GSM · USA (original Chinese edition)
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