Brasília, June 17, 2004 (Agência Brasil) - The Monetary Policy Committee (Copom) of the Central Bank (BC) decided to maintain the annualized overnight benchmark interest rate at 16%, without bias [that is, it cannot be altered up or down prior to the next meeting]. This is the second time this year that the members of the committee voted not to change what is known in financial markets as the Selic rate. The committee was unanimous in its decision to leave the Selic unaltered.

At the previous Copom meeting, held last month, of the committee's nine members -- the president and eight directors of the Central Bank -- , six voted to maintain the existing rate, while three favored lowering the Selic to 15.75%.

The Selic rate serves as a benchmark for banks and companies in determining the interest rate charged for checking plus accounts, credit cards, and loans in general.

Reporter: Gustavo Bernardes
Translator: David Silberstein