Selic rate: there are signs that there may be a reduction, but the government expected more

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The Monetary Policy Committee (Copom) of the Central Bank decided to maintain the Selic rate at 13.75%. It was the fourth Copom meeting this year. On each occasion, the committee decided not to change the base interest rate level. Ana Flor talks about the Central Bank and the new Selic rate Reproduction/GloboNews The Monetary Policy Committee (Copom) of the Central Bank decided, this Wednesday (21st), to maintain the Selic rate at 13.75% per year – a level in in effect since August 2022. Despite the milder tone of the statement, government-related sources informed the blog that they would like an even stronger signal that the reduction already begins at the next meeting. The assessment is that there would already be an environment to reduce the Selic rate in August. The decision was approved by the seven current directors of the House – the president and six others. The result was already expected by the government, but there are signs that there may be a reduction in August. Compared to the latest announcements, there is a milder tone, acknowledging an improvement in the external scenario. Doubts about the final text of the Fiscal Framework also contribute to resistance to inflation in the country. The two directors appointed by President Luiz Inácio Lula da Silva (PT) to the Central Bank have not yet been questioned. According to Ana Flor, the communiqué contains indications about the possibility of reducing the interest rate. The committee also assesses that there is resistance, especially in reaching the inflation target set by the government.

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