Definition
Certificado de Depósito Interbancário – The benchmark overnight interbank interest rate in Brazil, functionally equivalent to SOFR» in the U.S., used as the reference rate for floating-rate retail deposits, loans, and corporate funding. A bank paying "100% of CDI" on a deposit product means the deposit's rate moves one-for-one with this benchmark, so a rising CDI (as Brazil's central bank raises rates) simultaneously raises a bank's funding cost and the yield it earns reinvesting that cash, rather than only squeezing margins one way. Found In: Notes to Financial Statements (funding/interest rate disclosures), MD&A