Key interest rate kept at 14.25% p.a.
Central Bank 
The Central Bank (BC) has chosen not to change the benchmark interest rate from the current 14.25% per annum for the second consecutive time. By unanimous vote held at its meeting Wednesday (Oct. 21), the bank's Monetary Policy Committee (COPOM) maintained the SELIC rate—the main tool used by the Central Bank to keep in check the official inflation rate gauged by the National Consumer Price Index (IPCA)—at its existing level.
Brazil's key interest rate has stood at 14.25% p.a. since the end of July—the same level of October 2006.
The Central Bank has provided no estimates as to when it expects the rate to lower toward mid-target. In its statement released in the previous meeting in September, the Committee reported that the high interest level was enough to bring inflation back to the target at the end of 2016.
The National Monetary Council has officially established a 4.5% inflation target plus or minus 2 percentage points, within a ceiling of 6.5%. This year, rising regulated prices, such as energy and fuel, have created inflationary pressure.
While it helps keep prices under control, raising the SELIC rate has adverse effects on the economy, which is facing a year of recession with falling production and consumption levels. Higher interest makes credit more expensive and stimulates savings. Analysts forecast that Brazil's Gross Domestic Product will shrink 3% in 2015, whereas the Central Bank expects a 2.7% contraction.
Translated by Mayra Borges
Fonte: Key interest rate kept at 14.25% p.a.
