The Central Bank of Brazil has opted to keep its benchmark interest rate unchanged, reflecting a cautious approach amid persistent inflationary pressures. Despite recent economic indicators signaling a gradual slowdown in inflation, the bank emphasized that underlying risks, including global commodity price volatility and domestic economic recovery uncertainties, warrant maintaining a steady policy stance for the time being. This decision aligns with market expectations and aims to balance supporting growth while preventing inflation from spiraling out of control.

Key elements influencing the decision include:

  • Inflation rate hovering above the central bank’s target but showing signs of plateauing
  • Moderate economic growth forecasts for the upcoming quarters
  • Ongoing external shocks impacting import prices and supply chains
Indicator Previous Value Current Estimate
Selic…