Brazil central bank raises rates by 25 bps in seventh straight hike
BRASILIA, June 18 (Reuters) - Brazil's central bank raised interest rates by 25 basis points on Wednesday, delivering a seventh consecutive hike that defied bets it would hold rates steady, as unanchored inflation expectations and a resilient economy kept policymakers on alert.
The bank's rate-setting committee, Copom, unanimously decided to lift the benchmark Selic rate to 15%, the highest since July 2006. A majority of 27 out of 39 economists polled by Reuters had expected the bank to hold rates steady at 14.75%.
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Reuters
12 hours ago
- Reuters
Brazil to push for corporate, local government climate targets at COP30
BRASILIA, June 20 (Reuters) - COP30 president Brazil on Friday proposed expanding emissions reduction commitments to include pledges from companies, states, and cities, aiming to bolster global climate efforts following the U.S. withdrawal from the Paris Agreement. Brazilian diplomats preparing for the climate summit have been working closely with the U.N. to encourage countries to submit updated targets to reduce greenhouse gas emissions by September, after many missed the February deadline. The Paris accord, in which almost all nations agreed to limit warming to well below 2 degrees Celsius from pre-industrial levels, requires countries to submit such targets, known as Nationally Determined Contributions (NDCs), and update them every few years. In a letter released Friday, COP30 President Ambassador Andre Correa do Lago proposed widening the path for reducing emissions by creating a "global NDC" that would incorporate targets from various actors, not just countries, to transform the Global Stocktake - the process for reviewing Paris Agreement progress. "Our aim is to bring a new dynamic to global climate action, aligning the efforts made by businesses, civil society and all levels of government in coordinated action," Lago wrote, proposing the term "GDC," or "globally determined contribution," for the expanded initiative. While Lago did not explicitly frame the initiative as a response to U.S. policy changes, he acknowledged it would allow participation from U.S. companies and local governments that have kept their commitment to help curb climate change despite the Trump administration's formal exit from the Paris Agreement. "Our action agenda is opening up a lot of space for the U.S. side that wants to participate," Lago said, adding the proposal would also encourage countries with conservative emissions targets to be more ambitious. The Brazilian diplomat said private sector actors often move faster on climate action than governments, which are vulnerable to complex considerations such as the role of oil companies in spurring economic growth or the costs of transforming electricity grids. Dan Ioschpe, a Brazilian businessman appointed as COP30's "climate champion," said the initiative would provide clarity for non-state actors to align with Paris Agreement goals. "Not only in the United States, but in general in countries where the national government is not so involved in the issue, we are seeing governors, mayors, and the private sector extremely involved," Ioschpe said. COP30, to be hosted in the Amazonian city of Belem in November, marks the 10th anniversary of the Paris accord.
Reuters
2 days ago
- Reuters
Brazil central bank raises rates by 25 bps in seventh straight hike
BRASILIA, June 18 (Reuters) - Brazil's central bank raised interest rates by 25 basis points on Wednesday, delivering a seventh consecutive hike that defied bets it would hold rates steady, as unanchored inflation expectations and a resilient economy kept policymakers on alert. The bank's rate-setting committee, Copom, unanimously decided to lift the benchmark Selic rate to 15%, the highest since July 2006. A majority of 27 out of 39 economists polled by Reuters had expected the bank to hold rates steady at 14.75%.
The Independent
3 days ago
- The Independent
Brazil auctions off several Amazon oil sites despite environmentalists and Indigenous protests
Brazil auctioned off several land and offshore potential oil sites near the Amazon River on Tuesday as it aims to expand production in untapped regions despite protests from environmental and Indigenous groups. The event came months before Brazil is to host the U.N.'s first climate talks held in the Amazon. The protesters outside Tuesday's venue warned of potential risks that oil drilling poses to sensitive ecosystems and Indigenous communities in the Amazon. A luxury Rio de Janeiro hotel hosted the auction conducted by the National Oil Agency. Most of the 172 oil blocks for sale are located in areas with no current production, such as 47 offshore locations close to the mouth of the Amazon River and two sites inland in the Amazon near Indigenous territories. Nineteen offshore blocks were awarded to Chevron, ExxonMobil, Petrobras and CNPC. The oil companies see the area as highly promising because it shares geological characteristics with Guyana, where some of the largest offshore oil discoveries of the 21st century have been made. This region is considered to have high potential risk due to strong currents and the proximity to the Amazon seashore. Under public pressure from President Luiz Inácio Lula da Silva, the Brazilian Institute of the Environment and Renewable Natural Resources, known as IBAMA, approved an emergency plan allowing state-run Petrobras to conduct exploratory drilling in a block near the mouth of the Amazon River, the last step to grant an environmental license. 'It's regrettable and concerning that blocks are being acquired in a basin that has not yet received environmental licensing,' Nicole Oliveira, executive director of the environmental nonprofit Arayara, which tried to block the auction in court. 'This is an irresponsible move by the National Oil Agency and a very risky one for the companies involved," Oliveira told The Associated Press. "We will continue litigating to prevent the contracts from being signed and the blocks from being explored.' The auction wrapped up with only 34 oil blocks awarded. Still, Oliveira noted that the signing bonuses — one-time payments made by the winning companies — totaled $180 million, a record for auctions of this kind. She said the highest premium was for a block located near the mouth of the Amazon River, which drew a nearly 3,000% markup. Oliveira took part in a peaceful protest that gathered about 200 people outside the auction site, from environmentalists to Indigenous leaders. 'We came to Rio to repudiate the auction,' said Giovane Tapura of the Manoki, an Amazon tribe. 'We would have liked to be consulted and to see studies on how the oil drilling could affect us. None of this has been done.' In a recorded opening statement at the start of the event, Brazil's National Oil Agency said the auctions are part of the country's energy diversification strategy aimed at transitioning to a low-carbon economy and that contracts signed with the winning companies include measures to reduce carbon intensity in production activities, as well as mandatory investments in energy transition projects. Brazil has increased crude oil production, which became the country's top export for the first time last year, surpassing soybeans. The auction is part of the federal government's goal to maintain and even expand output beyond 2030, when production from current oil blocks under exploration is expected to decline. Brazil gets most of its electricity from hydropower and other green energies. The U.N. climate talks will be held in the city of Belem, close to the mouth of the Amazon. Critics say it's a contradiction that Brazil's president is pushing for increased fossil fuel production while trying to cast himself as an environmental champion. Claudio Angelo, head of international policy at Climate Observatory, a coalition of 133 environmental, civil society and academic organizations, told reporters ahead of the auction that Brazil is both undermining its own standing ahead of the climate talks and undermining climate protection efforts. 'The Brazilian government is endangering everyone's future since science has been crystal clear about the need to stop the expansion of fossil fuels everywhere in the world," he said. ___ AP journalist Diarlei Rodrigues contributed to this report from Rio de Janeiro. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
