The Central Bank of Brazil did not change the interest rate.

The Central Bank of Brazil (BCB) did not change the benchmark interest rate as expected.

According to the statement made by BCB, the Selic interest rate in the indicator position remained at 13.75 percent. The market expectation was that there would be no change in interest rates.

In its September 2022 meeting, BCB had given the medium to the interest rate hike, which it realized as 1175 basis points in 12 consecutive meetings. BCB did not change the interest rate in its last 3 meetings.

The Board stated that it will evaluate whether the Selic interest rate will be sufficient to ensure the convergence of inflation for a long time as required by the defense strategy and will remain vigilant.

The Committee reiterated that future monetary policy steps could be adjusted and would not hesitate to continue the tightening cycle if the inflation-effort process does not progress as expected.