Central Bank keeps interest rates at 15% per year with heated labor market

The Central Bank (BC) has decided, for the third time in a row, to keep the basic interest rate of the Brazilian economy at 15% per year, the highest level since 2006. The decision took into account the heating of the labor market, which has the lowest unemployment rate in history (5.6%). The maintenance of the basic interest rate puts the Selic at its highest level in almost 20 years. The Selic reached 15% per year — the highest since July 2006 (15.25% per year) — in June, after a sequence of six consecutive increases. Since then, the rate has remained unchanged in the Copom (Monetary Policy Committee) meetings in July, September, and now November. The decision to maintain the Selic at 15% per year is due to the heated labor market, according to the committee.