Brazil's Central Bank Maintains World's Highest Interest Rates

Brazil's central bank has had to sharply raise its key interest rate, currently at 10.5%, to deal with soaring inflation following the COVID-19 pandemic and the Russia-Ukraine conflict.

Central Bank of Brazil headquarters in Brasilia.

On July 31, the Central Bank of Brazil (BCB) decided to keep the base interest rate at 10.5% in the context of inflation in Latin America's largest economy being forecast to increase.

The BCB Monetary Policy Committee unanimously took the decision due to “uncertain global outlook” and the possibility of higher prices in Brazil.

These factors require “close monitoring and even greater vigilance,” the commission said.

This is the second consecutive meeting that the BCB has decided to keep interest rates unchanged.

Brazil's benchmark interest rate is among the highest in the world . Brazil has had to raise interest rates sharply to combat soaring inflation following the COVID-19 pandemic and the Russia-Ukraine conflict.

However, high interest rate policies aimed at curbing price increases have made loans more expensive, dragging down investment and consumption.

Source: VNA

Source: https://baophutho.vn/ngan-hang-trung-uong-brazil-duy-tri-muc-lai-suat-cao-nhat-the-gioi-216481.htm