The main objective of this paper is an empirical analysis concerning the
effects caused by Central Bank of Brazil transparency on the Brazilian
financial market. Furthermore, a brief review of the literature regarding
central bank transparency is presented. The effects of the different
dimensions of the monetary authority’s transparency on yield interest are
examined. Moreover, the consequences regarding changes in the country risk
are considered in this study. The findings denote that the Central Bank of
Brazil transparency works as a guide for the future interest rate market and
that the different dimensions of transparency contribute to a better market
efficiency.