Latin American Economy & Business - March 2017 (ISSN 1741-7430)

Brazilian inflation is falling, and the central bank (BCB)’s main policy rate, the Selic, seems to be following it on the way down. Retail inflation peaked at an annual rate of 10.7% in January 2016, and one year later, by January 2017, had fallen to 5.4%. The BCB has reacted. The latest 75bps Selic cut, announced on 20 February, took it down to 12.25%.