After the decision of the BC (Central Bank) to maintain the Selic rate at 15% per year, Brazil stands out within the Brics — a bloc of emerging countries — as the only one that did not cut interest rates.
Within the bloc, the Central Bank of India announced, last week, a reduction in the country’s interest rates, which went from 5.50% to 5.25%. The Russian Central Bank last cut rates in October, when it opted for a 0.50 point reduction, from 17.00% to 16.50%.
China, the world’s second-largest economy, also dropped its rates to historic lows in May, with the prime 1-year loan rate falling to 3% and the 5-year loan rate to 3.5%.
In addition to these, Egypt, South Africa, the United Arab Emirates and Saudi Arabia also adopted cuts in their reference rates.
. In the bloc with the 20 largest economies in the world, only Japan did not reduce interest rates in 2025.
The Central Bank, by opting to maintain the rate, also ends the 3rd of the Brazilian economy with an interest rate above two digits. The interval is no longer than the period between 2013 and 2017, when the country faced a severe economic crisis.
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The assessment is that services and the heated job market continue to put pressure on prices. Furthermore, the income tax exemption for those earning up to R$5,000 should inject R$28 billion into the economy next year.
