Brazil no longer has the highest real interest rate in the world after a new Selic cut; see ranking

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The country had returned to first place in November, but has now been surpassed by Mexico, shows a MoneYou survey. Argentina, which faces very high inflation, occupies the last position. Selic rate: understand what the basic interest rate of the Brazilian economy is Brazil no longer has the highest real interest rate in the world this Wednesday (13), after the Monetary Policy Committee (Copom) of the Central Bank (BC ) announce a new cut in the basic rate, of 0.50 percentage points (pp). According to a survey compiled by MoneYou, the country’s real interest rates are now at 6.11%, guaranteeing second place in the ranking. The new leader is Mexico, with a real rate of 6.58%. In the last release, on November 1st, Brazil had returned to the top of the list, after also falling to second place in September. Real interest is formed by the country’s nominal interest rate minus the inflation forecast for the next 12 months. 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. Argentina was at the opposite end of the ranking. Despite having the highest nominal rates on the list, at 133% per year (see below), the country also faces very high inflation, which ends up bringing down real rates. According to MoneYou, the combination of lower inflation and a positive external scenario helped, in general, to achieve lower real interest rates. Fourth 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 11.75% per year. This was the fourth 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 remained in 6th position. See below: Argentina: 133% Turkey: 40% Hungary: 13% Colombia: 13.25% Russia: 15% Brazil: 11.75% Mexico: 11.25% Chile: 9% South Africa: 8.25% Republic Czech: 7% Philippines: 6.50% Indonesia: 6% Poland: 5.75% Hong Kong: 5.75% United States: 5.50% New Zealand: 5.50% India: 5.40% United Kingdom: 5.25% Canada: 5% Israel: 4.75% 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% Singapore: 3.90% Denmark: 3.60% South Korea South: 3.50% Malaysia: 3% Thailand: 2.41% Taiwan: 1.88% Japan: -0.10% Switzerland: -0.75%

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