Brazil is the country with the highest interest rate per year, discounting the inflation projection, according to the world ranking of real interest rates compiled by the MoneYou portal and the manager Infinity Asset Management. The list has 40 countries.
Until February of this year, the country was at the top of the ranking, but was overtaken by Russia in March, after the sharp increase in interest rates in the country amid the Ukrainian War. As the Russian central bank cut the rate from 20% to 14% per year, Brazil returned to the top of the list.
In addition, the Central Bank’s Copom (Monetary Policy Committee) increased the base rate from 11.75% to 12.75% per year this Wednesday (4), helping to consolidate Brazil’s position.
To arrive at the real interest rate of 6.69% per year, the one-year interbank deposit (DI) rate, maturing in May 2023, and the inflation projected for the next 12 months (5.91%) are considered in the survey. BC Focus.
Second in the ranking is Colombia (3.86% per annum real interest), followed by Mexico (3.59% per annum), Indonesia (2.39% per annum), Chile (1.84% per annum ) and Russia (1.36% per year).
In nominal terms, Brazil is in fourth position in the ranking, behind Argentina (47% per year), Russia (14% per year) and Turkey (14% per year).
“Brazil reinforces the 1st place in the world ranking of real interest, gaining the podium since the last meeting in Russia, after the recent correction of interest rates and high inflation, in the midst of the war with Ukraine”, say those responsible for the survey.
According to the authors, the global movement of monetary tightening policies continued to gain strength, with the significant increase in the number of Central Banks signaling concern about inflation, especially due to the war, recent supply shocks and the prospect of a rise in commodities.
Among 166 countries, 67.47% maintained interest rates, 30.12% raised them and 2.41% cut them. In the ranking of 40 countries, 55% maintained, 40% raised rates and 5% cut.
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