Brazil continues to have the 2nd highest real interest rate in the world after a new Selic cut; see ranking | Economy

Selic rate: understand what the basic interest rate is for the Brazilian economy

Brazil continues to have the second highest real interest rate in the world after a new cut in the basic interest rate by the Monetary Policy Committee (Copom). Real interest is formed, among other points, by the country’s nominal interest rate minus the inflation forecast for the next 12 months.

Argentina continued with last place in the ranking. Despite, alongside Turkey, having the highest nominal rates on the list, at 50% per year (see below)the country also faces very high inflation, which ends up bringing down real rates.

See below the main results from the list of 40 countries.

This was the seventh consecutive cut in the basic rate by the board, after the Selic had remained at 13.75% per year for around a year.

Considering nominal interest rates (without discounting inflation), the Brazilian rate remained in 6th position. See below:

1. Argentina: 50%
2. Türkiye: 50%
3. Russia: 16%
4. Colombia: 11.75%
5. Mexico: 11%
6. Brazil: 10.50%
7. South Africa: 8.25%
8. Hungary: 7.75%
9. Chile: 6.50%
10. Philippines: 6.50%
11. India: 6.50%
12. Indonesia: 6.25%
13. Poland: 5.75%
14. Hong Kong: 5.75%
15. United States: 5.50%
16. New Zealand: 5.50%
17. Czech Republic: 5.25%
18. United Kingdom: 5.25%
19. Canada: 5%
20. Israel: 4.50%
21. Germany: 4.50%
22. Austria: 4.50%
23. Spain: 4.50%
24. Greece: 4.50%
25. Netherlands: 4.50%
26. Portugal: 4.50%
27. Belgium: 4.50%
28. France: 4.50%
29. Italy: 4.50%
30. Australia: 4.35%
31. Sweden: 4%
32. Denmark: 3.60%
33. South Korea: 3.50%
34. China: 3.45%
35. Singapore: 3.42%
36. Malaysia: 3%
37. Thailand: 2.50%
38. Taiwan: 2%
39. Switzerland: 1.50%
40. Japan: 0.10%