Latin American Economy & Business Report

09/2020 - Salvation by Selic?

Amid the coronavirus (Covid-19) pandemic and a global economic recession, the Brazilian economy is having a hard time, with GDP contracting by 9.7% quarter-on-quarter in the second quarter. Yet there are still reasons for optimism. For some analysts the Brazilian glass is half-full, rather than half-empty. They place their hopes on the steady fall in the Selic, the benchmark interest rate of Brazil’s central bank (BCB), which they see as a potential engine of recovery.

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