Brazil's Monetary Policy Committee Raises Interest Rates by 1.5 Percentage Points, The Biggest Increase since 2002

In December of that year, interest rates rose 3 percentage points; rate is now 7.75% per year

Larissa Garcia

Brasília

The Central Bank's Monetary Policy Committee (COPOM) raised the SELIC (basic interest rate) by 1.50 percentage points, to 7.75% per year.

This is the biggest increase since December 2002, when the SELIC rose 3 points, from 22% to 25%.

The decision followed the market's expectations regarding the increase in fiscal risk.

There is a consensus that inflation will exceed the 3.75% target set by the National Monetary Council for this year.

The Copom already aims to control 2022 and 2023 prices.

Translated by Kiratiana Freelon