The Central Bank's Monetary Policy Committee (COPOM) once again raised the basic interest rate – the seventh increase in a row, of 1.5 points – to 9.25% per year. It is the highest level since June 2017.
In a statement, COPOM said that it will increase the rate again, to 10.75%, at the February meeting.
The current hike, which started at 2% interest in March, is the most aggressive since 2002 and will produce the biggest difference between the initial and final rate since the creation of the inflation targeting system in 1999.
With the shock, the Central Bank wants to inhibit credit and with that to curb the inflationary advance seen since 2020.
Even so, in the 12 months to October, consumer prices jumped 10.7%.
Translated by Kiratiana Freelon