Brazil’s Central Bank Governor Roberto Campos Neto said over the weekend that the 12.75% interest rate should be enough to bring inflation down to the target level.
The key Selic rate is currently at 11.75%. Brazil’s central bank has implemented the toughest policy tightening of any major economy over the past year. It has raised rates by 975 basis points during that period.
Still, real interest rates are nearly positive. Inflation rises year-on-year in February