Brazil’s central bank just made it three in a row. The Copom, Brazil’s monetary policy committee, cut the benchmark Selic rate by 25 basis points to 14.25% at its June 17 meeting, continuing a cautious easing cycle that began earlier this year after nearly a decade’s worth of rate-hiking pain.
The decision was unanimous under the leadership of central bank president Gabriel Galípolo. Market prediction platforms had priced in over 90% probability for the cut heading into the meeting.
The long road down from 15%
The Selic rate sat at 15%, a near 20-year high, for nine straight months from April 2025 through January 2026. The first cut came in March, bringing the rate to 14.75%, followed by another trim to 14.50% in April.
Now at 14.25%, Brazil is three steps into what the central bank has carefully described as a “calibration” strategy. Inflation expectations for 2026 are projected at approximately 4.9%, well above the central bank’s 3% target.
