Brazil's central bank kept its benchmark Selic interest rate at 13.75% on Wednesday, ending a run of five consecutive cuts, The Rio Times reports. The rate-setting committee, Copom, voted unanimously, saying uncertainty had increased sharply, inflation expectations had risen and the economy was slowing faster than expected.
The committee said it would keep policy tight enough to bring inflation back to target. Annual inflation stands at 4.58%, just above the 4.5% upper limit of the tolerance band. The decision comes shortly after President Luiz Inácio Lula da Silva's re-election on 25 October, which was followed by a 13.9% one-day fall in the Ibovespa stock index. Minutes of the meeting are due on 10 November, and the next rate decision is scheduled for 9 December.
Source: The Rio Times