Category: Macroeconomy/Finance

Information regarding Brazil’s finance sector and the country’s macroeconomy.

Central Bank Cuts SELIC Interest Rate 4.5%

In a statement, the Central Bank pointed out that it sees the Brazilian economy gaining ground and that “the recovery will continue at a gradual pace”. The Monetary Policy Committee (COPOM) decided on Wednesday to cut the SELIC by 0.5 percentage point for the fourth consecutive time, bringing interest rates down to 4.5 percent, the lowest basis interest rate in history.

Brazil to honour $465 mn in UN and BRICS bank debts but no other in 2019

The federal government will pay debts of R$1.815 billion to the United Nations (UN) and the BRICS bank (a group comprising Brazil, Russia, India, China and South Africa) by the end of the year. On the other hand, it will no longer honor commitments to the Latin American Development Bank (CAF), the Inter-American Investment Corporation (IDB Invest), the Financial Fund for the Development of the La Plata Basin (FONPLATA), and the International Development Agency (IDA).

Brazil XP’s Valued at $14.9 Billion as IPO Tops Target Range

XP Inc., Brazil’s largest brokerage by equity-trading volume, raised $1.96 billion in its U.S. initial public offering, pricing its shares above the marketed range. The company and its existing shareholders sold 72.5 million shares Tuesday for $27 each after offering them for $22 to $25, according to a statement. That gives XP a market value of about $14.9 billion based on the outstanding shares.

Brazil is now a country with very low real interest rates, according to Guedes

Brazil is transitioning to a world of normal interest rates, while consumer price inflation is below 4% and the central bank’s policy rate has been 5 per cent since October. As such corporate bond market has opened up and several large firms are retiring their overseas debt to borrow from the local market. Traditionally, bank lending to companies stood at an around 47 per cent a year, according to Anefac, an industry association.