The Monetary Policy Committee (Copom) of the Central Bank decided on Wednesday (31/01) unanimously to reduce the basic interest rate (Selic) by 0.5 percentage points, to 11.25% per year, and maintain the signal for cuts of the same magnitude in the next meetings. In this way, the committee preserves the pace of monetary easing applied since August last year.
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Among the excerpts, that Copom decided to keep in the text released on Wednesday (31/01) is the one that defends that the government pursues the targets for the public accounts already presented.
Among the few news brought about in the December statement, Copom added, when analyzing the external environment, that the current situation is marked by the debate about the beginning of the fall in interest rates in the main economies.
International Reserves Rise
Brazil’s international reserves rose in the first year of Luiz Inácio Lula da Silva’s (PT) government and closed 2023 at US$355 billion, which represents an increase of 9.34% compared to a year earlier and the highest level since March 2022. The movement is observed after a 13% drop during the administration of his predecessor, Jair Bolsonaro (PL).
The increase was driven by the positive exchange rate flow – the highest since 2012, with a net inflow of US$ 11.49 billion – and by the income obtained from interest on the bonds in which Brazil’s reserves are invested, largely allocated in Treasuries (bonds of the United States Treasury).