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Interest

Markets expect maintenance of the base interest rate at 7.25% pa

26/11/2012

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 


Kelly Oliveira
Brazil Agency Reporter



Brasília - The Monetary Policy Committee (Copom) of the Central Bank (BC) must keep the benchmark interest rate, the Selic, the current level of 7.25% per year, at a meeting scheduled for tomorrow and Wednesday (28) . This is the expectation of financial analysts, six weeks ago.

Analysts consulted by BC every week, do not expect a change in the benchmark interest rate in 2013.

If the Monetary Policy Committee maintained the Selic at the current level, it will stop the process of rate cuts that began in late August in 2011, when it went from 12.5% to 12% per year.

On the last day 22, the BC president, Alexandre Tombini, said the Monetary Policy Committee decided that we need to keep the "monetary conditions [Selic] stable for long enough."

According Tombini, the cost of money in the country is low and this is reflected in interest rate policy. "We're in another range, closer to what happens in the rest of the world," he said. He added that, when necessary, the Committee will adjust the Selic "up or down".

The BC uses the Selic as a tool to influence the economy and inflation gauge. This year, due to the effects of the international economic crisis in Brazil, one of the strategies of the government to stimulate the economy was to reduce the Selic rate.

 

Edition: Lily Beraldo

Source: Agency Brazil

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This article was translated by an automatic translation system, and was therefore not reviewed by people.

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