Brazil has the highest real interest rate in the world, followed by Turkey and Argentina

Brazil remains the country with the highest real interest rates in the world, calculated at 9.05%, more than seven times the average of 1.27% of the market consulting ranking published this week. Real interest deducts inflation in each country.

Brazil leads the ranking of 40 countries analyzed, above Turkey, Argentina, Russia and Colombia.

Check out the top 10 places:

Brazil (9.05%)

Turkey (7.77%),

Argentina (6.80%),

Russia (6.57%),

Colombia (4.05%),

Indonesia (3.67%),

Mexico (3.26%),

South Africa (2.93%),

Hungary (2.04%) and

Chile (1.69%).

In the last survey published in September, Brazil already had the highest real interest rate in the ranking, but at a lower level, at 8.45%.

On Wednesday (4), the Monetary Policy Committee (Copom) of the Banco Central unanimously halted the trajectory of the drop in the basic interest rate that began in April, keeping interest rates at 13.75% per year.

In a statement, Copom said uncertainties had widened in recent weeks and inflation expectations remained above the target. The body gave no clues about the trajectory of interest rates in the upcoming meetings.

The basic interest rate, the Selic, is the main instrument used by the BC to control inflation. In the cumulative 12-month period, the index rose from 4.5% to 4.62%, above the target ceiling of 4.5%.

The current interest rate is the subject of criticism from experts and industry. The National Confederation of Industry says that the maintenance of interest on Copom is “unjustifiable” and costs companies and families a great deal.

“It is possible to continue decreasing interest rates at a pace compatible with the convergence of inflation towards the goal, without imposing a higher cost on the economy,” said Ricardo Alban, president of the CNI.

High interest rates are the main cause of the rise of dívida pública, according to data from Banco Central. In the last twelve months, interest has consumed more than R$ 1.1 trillion from the public budget, which represents 8.9% of Brazilian GDP.

With the re-election of President Luiz Inácio Lula da Silva, financial market agents have been charging for a spending cut as a way to stabilize dívida pública, which went from 71.7% of Gross Domestic Product (GDP) in 2022 to about 82.9% of GDP in August 2026.

On the other hand, economists critical of the ECB’s monetary policy point out that, since high interest rates are the biggest responsible for the increase in debt, an alternative policy should be sought that contributes to the reduction of interest rates.