How the Selic affects everything in your life Brazil has the highest real interest rate in the world even after the Monetary Policy Committee (Copom) of the Central Bank (BC) reduced the Selic rate by 0.25 percentage points, to 14% per year, in a decision announced this Wednesday (5). ? Real interest is formed, among other points, by the nominal interest rate subtracted from the inflation forecast for the next 12 months. Thus, according to a survey compiled by MoneYou, the indicator in the country was 9.30%. ? The second position in the ranking went to Russia, which recorded a real rate of 9.09%. Colombia appeared in third place, with real interest rates of 6.16%. In a report released this Wednesday, MoneYou stated that the rise in inflation expectations for the next 12 months reduced real interest rates in most countries, amid the uncertainties caused by the conflict in the Middle East. Argentina, which went through a strong economic shock under the government of Javier Milei, has fluctuated in the rankings. This month, the country ranked 5th, with a real interest rate of 4.51%, amid a still challenging economic scenario and high inflation. See below the main results from the list of 40 countries.
Despite the Selic cut, Brazil has the highest real interest rate in the world; see ranking
How the Selic affects everything in your life Brazil has the highest real interest rate in the world even after the Monetary Policy Committee (Copom) of the Central Bank (BC) reduced the Selic rate by 0.25 percentage...
Fall in the Selic This Wednesday, the Copom announced the reduction in the basic interest rate by 0.25 percentage points, to 14% per year. This is the fourth consecutive cut. The movement occurs amid the resumption of war in the Middle East, which has raised oil prices and could put pressure on Brazilian inflation through increased fuel prices.
Nominal interest Considering nominal interest (without discounting projected inflation), the Brazilian rate occupied third position, alongside Russia. See below: Turkey: 37% Argentina: 29% Brazil: 14% Russia: 14% Colombia: 12% South Africa: 7% Mexico: 6.50% Hungary: 5.75% Indonesia: 5.75% India: 5.25% Philippines: 4.75% Chile: 4.50% Australia: 4.35% Hong Kong: 4% Israel: 3.50% Poland: 3.75% United Kingdom: 3.75% United States: 3.75% Czech Republic: 3.75% China: 3% Malaysia: 2.75% South Korea: 2.75% Germany: 2.40% Austria: 2.40% Spain: 2.40% Greece: 2.40% Netherlands: 2.40% Portugal: 2.40% Belgium: 2.40% France: 2.40% Italy: 2.40% New Zealand: 2.50% Canada: 2.25% Taiwan: 2% Denmark: 1.85% Sweden: 1.75% Thailand: 1% Japan: 1% Singapore: 0.90% Switzerland: 0% Central Bank Headquarters in Brasília Raphael Ribeiro/BCB
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