The country’s projected rate for the next 12 months is 6.54%, according to data from consultancy MoneYou
Brazil remained the 2nd country with the highest real interest rates in the world in May, at 6.54% per year. The projection is “ex-ante”, when annualized interest rates are estimated based on estimates of the basic interest rate, Selic, and estimated inflation for the next 12 months.
The high level occurs even after the Copom (Monetary Policy Committee) of the BC (Central Bank) promoted this Wednesday (May 8, 2024) a cut of 0.25 percentage points in the Selic, which was 10.5 % per year. The data is from economist Jason Vieira, from the MoneYou consultancy. Here is the full report (PDF – 275 kB).
Brazil is second only to Russia in terms of real interest rates. The European country comes in 1st, with 7.79% per year. Read the infographic below with the ranking:
Mexico is in 3rd, with 5.88%. Other emerging countries, such as South Africa (5.09%) and Colombia (4.04%), follow, in 4th and 5th place, respectively.
Holding the largest economy in the world, the United States (2.08%) occupies 10th position. Argentina, in turn, is in 40th place, with negative real interest rates (-46.82%).
NOMINAL INTEREST
When referring to nominal interest – which does not take inflation into account –, Brazil occupies 6th position. It is behind Argentina, Turkey (both with 50.00% per year), Russia (16.00%), Colombia (11.75%) and Mexico (11.00%).
Here’s the ranking nominal interest rate below:
Tags: Brazil continues #2nd highest real interest rate cut Selic
