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Brazil · Central Bank · Inflation · Interest Rates
Brazil's central bank, Copom, reduced its benchmark Selic lending rate for the third consecutive time to 14.25% from 14.5%, prioritizing economic growth despite persistent high inflation and global uncertainties stemming from Middle East conflicts.
This decision, published by Dow Jones on June 17, 2026, marks a continued effort to stimulate Brazil's sluggish economy. The rate cut follows similar reductions in March and April, indicating a sustained monetary easing cycle.
The monetary authority acknowledged elevated uncertainty regarding its inflation projections, specifically citing the lack of resolution in Middle East armed conflicts and their impact on global financial conditions. Despite the high inflation environment, the central bank's focus remains on bolstering economic activity.
The EUR/BRL exchange rate showed a +0.23% change over five days and a -8.46% change year-to-date as of June 23, 2026. The article was authored by Paulo Trevisani and Nicholas G. Miller.
