Brazil continues to have the 2nd highest real interest rate in the world after a new Selic cut; see ranking

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The country left the leadership in December, when it was surpassed by Mexico in the MoneYou survey. Argentina, which faces very high inflation, occupies the last position. Selic rate: understand what the basic interest rate is for the Brazilian economy Brazil continues to have the second highest real interest rate in the world after a new cut in the basic interest rate by the Monetary Policy Committee (Copom). Real interest is formed, among other points, by the country’s nominal interest rate minus the inflation forecast for the next 12 months. The Central Bank (BC) decided this Wednesday (31) to reduce the Selic by 0.50 percentage points (pp), to 11.25% per year. Thus, according to a survey compiled by MoneYou, the country’s real interest rates are now at 5.95%. The leader is Mexico, with a real rate of 6.49%. In the last release, on December 13, Brazil had already left the top of the list. The combination of lower inflation and a positive external scenario helped to achieve a lower real interest rate, reported MoneYou. Argentina came in last place in the ranking. Despite having the highest nominal rates on the list, at 100% per year (see below), the country also faces very high inflation, which ends up bringing down real rates. See below the main results from the list of 40 countries. one announced a basic interest rate of 0.50 pp. With the reduction, the Selic remained at 12.25% per year. Fifth consecutive interest rate cut This Wednesday, Copom announced a new cut in the basic interest rate, of 0.50 pp. With the reduction, the Selic remained at 11.25% per year. This was the fifth consecutive cut in the basic rate by the board, after the Selic had remained at 13.75% per year for around a year. Nominal interest Considering nominal interest (without discounting inflation), the Brazilian rate rose to 5th position. See below: Argentina: 100% Turkey: 45% Russia: 16% Colombia: 13% Brazil: 11.25% Mexico: 11.25% Hungary: 10% Chile: 8.25% South Africa: 8.25% Republic Czech: 6.75% Philippines: 6.50% Indonesia: 6% Poland: 5.75% Hong Kong: 5.75% United States: 5.50% India: 5.50% United Kingdom: 5.25% Canada : 5% Israel: 4.50% Germany: 4.50% Austria: 4.50% Spain: 4.50% Greece: 4.50% Netherlands: 4.50% Portugal: 4.50% Sweden: 4.50 % Belgium: 4.50% France: 4.50% Italy: 4.50% China: 4.35% Australia: 4.35% Denmark: 3.60% Singapore: 3.52% South Korea: 3.50 % Malaysia: 3% Thailand: 2.26% Taiwan: 1.88% New Zealand: 0% Japan: -0.10% Switzerland: -0.75%

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