Even with the rate change, Brazil has 3º higher nominal interest rate of the G20

After cutting Copom in August, Selic is at 13.25% per year; Argentina and Turkey lead the ranking

By Eduarda Teixeira

The Brazilian basic interest rate, Selic, is at 13.25% per year. Even after Copom (Monetary Policy Committee) reduced the rate by 0.5 p.p. in August, Brazil still has the 3º highest percentage among the countries that are part of the G20.

Brazil’s nominal interest rate is only behind Argentina (118%) and Turkey (25%), which face lack of inflationary control. In the neighboring country, for example, the accumulated inflation from January to July of the country was 113.4%.

On Wednesday (Sep 13), Indec (National Institute of Statistics and Argentina Census) will disclose Argentina’s inflation for August. Economists project an increase of 12% for the month. The country is going through a crisis that has caused a great devaluation of the peso, the Argentine currency.

Of the members of the G20, Japan has the lowest interest rate, with a negative percentage (-0.1%). Even with inflation above the 2% target, the country’s central bank states that it will not increase the rate.

G20 SUMMIT.

The G20 is a group formed by the 19 largest world economies and the European Union. The countries that make up the group are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom and the United States.

On Saturday (9.Sep.2023) to Sunday (10.Sep), the 18th G20 Summit will be held in New Delhi, the capital of India. With the theme “One Land, One Family, One Future”, members of the group and guests discuss food and energy security, international debt, technology and other topics. President Luiz Inácio Lula da Silva (PT) is one of the guests for the event.

Brazil will assume the presidency of the G20 on December 1, 2023. According to Itamaraty, the main themes from then on in the group will be:

Combating inequalities in a broad way, in the social area, between countries in relation to access to resources, in the means to face the climate issue, in the fight against hunger and poverty;

Sustainable development, seen in a broad way;

Reform of global governance in order to better represent the world and make it more “fair and effective”.

The 2024 Summit is scheduled to be held in Rio de Janeiro on November 18 and 19, 2024.

This report was produced by Journalism intern Eduarda Teixeira under the supervision of assistant editor Ighor Nóbrega.

Resource: Poder360