China News Agency, Sao Paulo, September 21 (Reporter Mo Chengxiong) The Monetary Policy Committee of the Central Bank of Brazil (Copom) announced on the evening of the 21st local time that it would maintain the country's current benchmark interest rate at 13.75% unchanged, in line with market expectations.

The move signals the end of a new round of rate hikes by Brazil’s central bank that began in March 2021.

  Between August 2020 and March 2021, Brazil’s benchmark interest rate remained at an all-time low of 2%.

From March 2021 to August this year, the Central Bank of Brazil implemented a new round of interest rate hikes. After 12 consecutive interest rate hikes, the country’s benchmark interest rate was gradually raised from 2% to 13.75%, with a cumulative interest rate hike of 11.75 percentage points. It is the largest rate hike cycle since 1999.

  According to the forecast of Brazilian financial market analysts, from now until May next year, Brazil will continue to maintain the current benchmark interest rate of 13.75% unchanged.

In June next year, Brazil's benchmark interest rate will be cut to 13.5%.

By the end of next year, the benchmark interest rate will be lowered to 11.25%.

  Experts said that the Brazilian central bank ended a new round of interest rate hikes this time, mainly because the country's current inflation continued to slow.

According to data released by the Brazilian National Institute of Geography and Statistics (IBGE), Brazil's inflation rate fell for two consecutive months in July and August this year, with a month-on-month contraction of 0.68% in July and a month-on-month contraction of 0.36% in August.

  It is understood that the central bank of Brazil holds an interest rate meeting every 45 days, and its adjustment of the benchmark interest rate is aimed at keeping the inflation rate within the management target range.

Brazil's National Monetary Council (CMN) set the median inflation rate management target for this year and next at 3.5% and 3.25%, both of which are allowed to fluctuate by 1.5 percentage points.

  According to the latest forecast of the Brazilian financial market, Brazil's inflation rate will be 6% and 5.01% this year and next, both higher than the upper limit of the government's control target of 5% and 4.75%.

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