After the Central Bank’s decision, Brazil continues with the highest real interest rate in the world

On Wednesday, the Central Bank’s Monetary Policy Committee kept the Selic unchanged at 13.75% pa. (Photo: Marcello Casal Jr./Agência Brasil)

The Selic (base interest rate of the Brazilian economy) has not increased since June 2022, but the country remains at the top of the world ranking of real interest rates, according to a survey compiled by MoneYou and Infinity Asset Management . Argentina (-13.02%) occupies the last position in the list of 40 countries.

On Wednesday (3), the Copom (Monetary Policy Committee) of BC (Central Bank) kept the Selic unchanged at 13.75% pa.

Given the expected inflation for the next 12 months – 5.32%, according to the Central Bank’s Focus Bulletin – real interest rates stood at 6.82%. The rate is enough to keep the country at the top of the list, ahead of Mexico (6.13%), Colombia (5.13%), Chile (4.89%) and the Philippines (2.62%).

The real interest rate is calculated by subtracting the expected inflation for the next 12 months and is considered a better measure for comparison with other countries.

nominal interest

Looking at nominal interest rates (excluding inflation), Brazil remains in second place, just behind Argentina, where the rate is 91%, but hyperinflation is driving the real rate. See below:

Argentina: 91%
Brazil: 13.75%
Colombia: 13.25%
Hungary: 13%
Chile: 11.25%
Mexico: 11.25%
Türkiye: 8.50%
South Africa: 7.75%
Russia: 7.50%
Czech Republic: 7%
Poland: 6.75%
India: 6.68%
Philippines: 6.25%
Indonesia: 5.75%
Hong Kong: 5.25%
New Zealand: 5.25%
United States: 5%
Canada: 4.50%
Singapore: 3.78%
Israel: 4.50%
China: 4.35%
United Kingdom: 4.25%
Australia: 3.85%
Germany: 3.75%
Austria: 3.75%
Spain: 3.75%
Greece: 3.75%
Netherlands: 3.75%
Portugal: 3.75%
Sweden: 3.75%
Belgium: 3.75%
France: 3.75%
Italy: 3.75%
South Korea: 3.50%
Malaysia: 3%
Denmark: 2.60%
Thailand: 2%
Taiwan: 1.88%
Japan: -0.10%
Switzerland: -0.75%

Alaric Cohen

"Freelance communicator. Hardcore web practitioner. Entrepreneur. Total student. Beer ninja."

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