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[BUSINESS] · Brazil · 100 sources

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Brazil Central Bank cuts Selic rate to 13.75% per year FAST-MOVING

The Monetary Policy Committee (Copom) of the Central Bank of Brazil has unanimously decided to reduce the Selic rate by 0.25 percentage points, bringing it to 13.75% per year. This marks the fifth consecutive reduction in the current cycle.

The decision comes amid signs of economic moderation, particularly in cyclical sectors, and a recent deflation of 0.32% in the IPCA inflation index for August. However, the committee expressed caution due to external uncertainties, including geopolitical tensions in the Middle East and the potential impact of the El Niño phenomenon on food prices.

While the rate cut is seen as a positive signal for sectors like agribusiness and real estate, industrial and labor organizations, including the CNI and CUT, have criticized the move as insufficient. They argue that the current interest rate remains too restrictive for economic recovery, noting that the real interest rate sits significantly above the neutral rate.

Entities

Banco Central do Brasil · Bank of Angola · Brazil · CNI · CUT · Central Única dos Trabalhadores · Confederação Nacional da Indústria · Copom · Diego Guillen · FIEMG · Gabriel Galípolo · Luiz Inácio Lula da Silva

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BC reduz juros básicos para 13,75% ao ano [portalbrasilempresarial.com.br]
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