With the Selic rate at 12.75%, Brazil once again leads the ranking of the highest real interest rates

Brazil returned to the top of the ranking of the largest fees real among the largest economies in the world, with the country’s basic rate, the Selic , reaching 12.75% per year. The survey, made by Infinity Asset, takes into account the interest of 40 countries.

THE Russia was in the lead, however, the country’s central bank held two meetings in April with cuts in the nominal interest rate, today at 14%.

As a result, Russia dropped to sixth position in May, with a real interest rate of 1.36%. Brazil, on the other hand, took first place, with the “top 5” still containing the Colombia The Mexico Indonesia and the Chile .

According to the survey, the real interest rate in Brazil, calculated by subtracting the nominal interest rate from the projection of inflation for the next 12 months, it is 6.69%.

Considering only the nominal interest rate, defined by central banks, Brazil maintained its fourth place in March, behind the Argentina (with interest rising from 42% to 47%), Russia (with interest falling from 20% to 14%) and Turkey (whose interest remained at 14%).

After high interest announced on Wednesday (4), the U.S rose both in the ranking of real interest rates (-3.82%), going from 34th to 30th position, as well as nominal ones, moving from 24th to 21st position.

The lowest nominal interest rates are from Switzerland (-0.75%), Denmark (-0.60%) and Japan (-0.10%), while the lowest real rates are from Argentina (-10.30%), Belgium (-6.83%) and Spain (-6.22%).

In relation to the March survey, the average real interest rate went from -0.94% to -1.73%, while the nominal rate rose from 3.55% to 3.80%, indicating that countries continue to raise interest rates to fight inflation, whose projections have also worsened.

According to the survey, among 166 countries, 67.47% maintained their interest rates, 30.12% increased them and 2.41% cut them between March and May. Considering only the 40 countries in the ranking, 55% maintained interest rates, 40% raised them and 5% cut them.

For Infinity Asset, “the pressure of global inflation continues, which has accelerated in most measures, given the still continuous pressures and shocks of wholesale supply and acceleration of demand, in view of the reopening process of several locations, converting the most rates in negative territory”.

“Although part of the quantitative easing programs are preserved, the global movement of monetary tightening policies continued to gain strength, with the expressive increase in the number of BCs signaling concern about inflation”, he says.

Source: CNN Brasil

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