The Brazilian Central Bank’s Monetary Policy Committee (COPOM) on Wednesday (Feb.7) announced its decision to cut the country’s benchmark interest rate Selic from seven to 6.75 percent, the lowest level since 1986.
It was the 11th consecutive cut in the Selic rate. However, it will likely be the last one. In a statement, the committee said given the current economic scenario, the best choice would be to end the Selic rate’s reduction cycle.
“For the next meeting, in case the basic scenario evolves as expected, the committee sees at this point that it would be most proper to interrupt the process of monetary flexibilization,” the COPOM said.