Brazil central bank cuts Selic interest rate 25 points to 14.50%
Key takeaways
- Brazil s Central Bank following its two days meeting 28–29 April of the Monetary Policy Committee (COPOM) announced the reduction of its SELIC rate by 25 basis points to 14.50%.
- The cut, which had been anticipated by markets, resulted in a unanimous decision and marked the second consecutive 25 basis point cut since the Central Bank initiated its current loosening cycle last month.
- However the central bank assessed a cut was necessary as the cooling of GDP growth indicated the transmission of prolonged elevated rates to the real economy.
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Brazil s Central Bank following its two days meeting 28–29 April of the Monetary Policy Committee (COPOM) announced the reduction of its SELIC rate by 25 basis points to 14.50%.
The cut, which had been anticipated by markets, resulted in a unanimous decision and marked the second consecutive 25 basis point cut since the Central Bank initiated its current loosening cycle last month.
However the central bank assessed a cut was necessary as the cooling of GDP growth indicated the transmission of prolonged elevated rates to the real economy. Moreover, monetary policy remains restrictive despite recent cuts. The renewed rate reduction came despite the inflation outlook deteriorating, as confirmed by the weekly Focus survey, and the Central Bank raised its 2026 headline inflation forecast to 4.6% from 3.9% at its prior meeting in March. Likewise the forecast for Q4 2027—the Bank s current relevant horizon—stood at 3.5%, both above the 3.0% midpoint of the Central Bank s 1.5–4.5% tolerance range.