Economy · Markets
—The cut. Brazil’s central bank lowered its benchmark Selic rate to 14.25%, a third straight quarter-point reduction, in a unanimous vote.
—The twist. The bank hardened its language on inflation, warning that prices have accelerated and breached the top of its target range.
—The forecast. It raised its own inflation projection for 2026 to 5.2%, well above the 4.5% ceiling.
—The new goalpost. The bank pushed its target for hitting 3% inflation out to early 2028, buying itself more time.
