May, 5th – 2023


1. Central Bank maintains Selic at 13.75%

The Central Bank’s Monetary Policy Committee (COPOM) is keeping the Brazilian basic interest rate (SELIC) unaltered at 13.75% per year. The rate has remained the same since June 2022, but the federal government aims to reduce it to stimulate economic growth.

According to COPOM, the current situation requires patience and calm regarding monetary policy. With this decision, Brazil continues to lead the ranking of highest real interest rates in the world.

The real interest rate is calculated by discounting the expected inflation rate for the next 12 months. With the inflation rate for the next year set at 5.32%, Brazil has a real interest rate of 6.82%, which is higher than that seen in Argentina, Mexico, Chile, or Colombia.

G1: Com decisão do Copom, Brasil continua com a maior taxa de juros reais do mundo 
InfoMoney: Banco Central mantém Selic pela 6ª vez seguida, a 13,75% ao ano

2. Voting on Fake News Bill is postponed

The Chamber of Deputies postponed a vote on the bill aimed at regulating social media, known as the Fake News Bill. President of the Chamber Arthur Lira accepted the request of the bill’s rapporteur, Orlando Silva. A new date has yet to be set for the vote.

Aimed at reducing the sharing of fake news on social media, the bill was submitted to Congress in 2020. It lists a series of rules for companies that own content-hosting platforms.

G1: Após pedido do relator, Lira adia votação do PL das Fake News na Câmara

3. President of the Senate submits bill to regulate Artificial Intelligence in Brazil

Senate president Rodrigo Pacheco has submitted a bill to Congress aimed at regulating the use of artificial intelligence (AI).

There are currently four bills under discussion in Congress focused on AI. Pacheco’s proposal combines all four bills into one, defining five pillars: principles, rights of people affected, risk classification, obligations, and AI systems governance. The bill also addresses supervision and responsibilities.

According to the text, there will be penalties for non-compliance and goals to promote innovation. If the bill is approved, the government will select which government body will be responsible for monitoring the use of AI.

Metrópoles: Pacheco apresenta projeto para regulamentar inteligência artificial  
O Globo: Presidente do Senado apresenta projeto de lei para regular o uso da inteligência artificial no Brasil

4. BNDES announces investment of up to R$ 1.45 billion in equity investment funds of small and medium enterprises

Aiming to foster growth in the economy, Brazil’s National Bank for Economic and Social Development (BNDES) announced that it will invest up to R$1.45 billion in six equity investment funds (FIPS) of small and medium-sized enterprises.

BNDESPar, the bank’s investment arm, will be responsible for the contribution, and up to 25% of the total amount of each fund will be invested, meaning that companies can potentially attract investments of up to R$5.8 billion. To participate, investment funds and seed capital must be focused on Brazilian companies with annual revenues of R$16 million and venture capital companies aimed at companies with up to R$300 million in revenue.

Businesses with diverse teams and who present implemented diversity policies will be eligible for higher scores.

UOL: BNDES anuncia investimento de até R$ 1,45 bi em fundos de participações em PMEs

5. Federal Police investigate former president Jair Bolsonaro for allegedly forging his vaccination certificate

Former president Jair Bolsonaro is under investigation for allegedly forging his COVID-19 vaccination records. According to the Federal Police, he may have added false data to the Health Ministry system.

The police suspect that the vaccination records of his youngest daughter, Laura Bolsonaro (12), had also been forged. According to the Federal Police, the forgeries were to ensure that Bolsonaro, his family, and his aides could enter the United States, thereby breaking the mandatory vaccination rules that were in place at the time. Six people have so far been arrested as a result of the investigation. In an interview, Bolsonaro said he did not take the COVID-19 vaccine and that no data from his vaccine certificate has been altered.

Jornal Nacional: PF faz buscas na casa de Bolsonaro por suspeita de fraude em dados de vacinação 
O Globo: Certificado com dados falsos da vacinação de Bolsonaro foi emitido no Planalto