Brazil’s Central Bank decided on Wednesday to lower its benchmark interest rate, SELIC, by 50 basis points to 13.25%. Lula accused Campos Neto of defending economic interests outside of Brazil by keeping up high interest rates despite inflation slowing down. Lula’s dispute with Campos Neto has been fueled by the Central Bank maintaining a 13.75% interest rate — from September 2022 until now — in order to comply with the entity’s 2023 objective of 3.25% inflation. Brazil has an interannual rate of 3.26% and suffered an 0.08% deflation in June. The country’s real interest rates are considered the highest in the world in relation to its inflation rate.

Source: Bueno Aires Herald August 04, 2023 11:41 UTC