Brazil’s central bank interest rate-setting committee, Copom, unanimously voted on Wednesday to lower its benchmark Selic rate by 25 basis points to 14.25%, a level last seen in May 2025, but acknowledging a tougher inflation outlook given the risks from election-year fiscal stimulus and the impact of a likely El Nino weather pattern shock.

Expectativa de inflação subiu pela 14ª semana seguida, para 5,3%

Brazil's central bank cuts the Selic rate to 14.25% for a third consecutive meeting, continuing a cautious easing cycle from a near 20-year high of 15%.

By Paulo Trevisani and Nicholas G. Miller