Brazil’s Central Bank Cuts Selic Rate to 13.75%

Brazil’s monetary policy committee unanimously cut the Selic target to 13.75% a year. The committee said economic activity was gradually moderating, particularly in cyclical sectors, while the labor market remained heated. Its baseline projections put inflation at 5.2% in 2026, 3.9% in 2027 and 3.2% in the first quarter of 2028, using an exchange rate of 5.15 reais per U.S. dollar. Copom said the total size of its policy-calibration cycle would depend on new information needed to ensure inflation converges to target.