Bruno Bocchini
Reporter - Agência Brasil

Brasília - The Monetary Policy Committee (Copom) of the Brazilian Central Bank (BC) resolved on Wednesday (20) to raise the annualized benchmark interest rate (Selic) to 19.5%. The unanimous decision to raise the rate by 0.25% continues the upward trend that began last September.

The Selic is a benchmark for all the interest rates charged by the country's financial institutions. It corresponds to the interest rate the government agrees to pay when it borrows money on the internal market.

In calculating the Selic, the Copom takes into account various factors, including the prospects for future inflation (in the next 30 days) and momentary upward or downward price movements in the economy (past inflation).

Translation: David Silberstein