Brazil’s central bank raises Selic prime rate to 13.75%

The Central Bank’s Monetary Policy Committee (Copom) announced on Wednesday a 0.5 percentage point increase in the prime rate, the Selic, from 13.25% to 13.75% per annum.

The market expected this increase. In a communiqué issued after the June meeting, Copom had hinted at the possibility of a new adjustment “of the same or lesser magnitude” than the 0.5% decided this month.

With this decision, Copom continues the cycle of rate hikes that began in March 2021, given the persistence of inflation. The increase announced Wednesday was the 12th in a row.

According to the latest Focus Bulletin released by the central bank on Monday, the rate is expected to remain at 13.75% until the end of the year. However, some analysts already believe there will be another hike in

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