Within the rating of the best rates of interest, Brazil is second solely to Argentina

Within the rating of the best rates of interest, Brazil is second solely to Argentina

O central bank decided to keep the basic interest rate, the Selicat the current level of 13.75%, due to the improvement in the economic scenario with the deceleration of the inflation and economic growth projections. Despite the decision signaling a loosening of the prevailing monetary policy, Brazilians still live with the greatest interest rate of the world.

Brazil followed this contractionary trajectory of interest rate hikes since March 2021, reaching one of the highest nominal rates in the world in the comparison between the 40 main countries, according to a survey prepared by Infinity Asset. Brazil is the second country with the highest nominal rate, at 13.75%, second only to Argentina, where the rate is 75%. The United States has climbed eight positions since March, when it started raising interest rates, moving from 24th to 17th position.

In the ranking of real interest, the Brazil occupies the first position. The real interest rate is the “market” rate, that is, a benchmark for interest given or taken in a real operation. Discounting inflation for the next twelve months, Brazil’s real interest rate is 8.22%, followed by Mexico at 5.13%, and Colombia at 3.86%. You United States occupies the 19th position with negative real interest at 1.32%. The real interest rate becomes negative when inflationary projections are higher than the applied interest rate. To reverse this scenario and bring inflation within the 2% target, the US central bank, the Federal Reserve (Fed)raised the US interest rate again by 0.75 percentage point, taking it to 3.25%, the highest rate in 14 years.

The global movement of monetary tightening policies continues to gain strength, with the significant increase in the number of Central Banks signaling concern about inflation. Overall, among 167 countries, 50.90% maintained interest rates, 44.91% increased them and 4.19% cut them. In March, the percentage of those who increased was only 19.16%.

Source: See

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