The Central Bank of Brazil’s Monetary Policy Committee (Copom) cut the Selic rate by 25 basis points to 13.75% per year in September, citing gradual economic moderation and recent inflation deceleration while seeking convergence to the target. Copom held the rate at 15.00% from September 2025 through January 2026 before making consecutive 25-basis-point cuts from March through September. Headline and underlying inflation fell below the upper limit of the tolerance interval but remained above target, while Focus survey expectations stood at 4.9% for 2026 and 4.3% for 2027 and Copom projected 3.2% inflation for the first quarter of 2028. Economic activity was moderating, particularly in cyclical sectors, but remained resilient alongside a tight labor market. The global outlook remained uncertain due to unresolved Middle East conflicts and uncertainty over monetary policy in some advanced economies, contributing to asset and commodity price volatility. Copom said the total scale of the calibration cycle will depend on new information and pledged to keep policy adequately restrictive to ensure inflation convergence.
2026-09-16Central Bank of Brazil
Central Bank of Brazil Cuts Selic Rate by 25 Basis Points to 13.75%
The Central Bank of Brazil’s Monetary Policy Committee (Copom) cut the Selic rate by 25 basis points to 13.75% per year in September, citing moderating activity and easing inflation while seeking convergence to target. Copom said further calibration will depend on new information and pledged to maintain adequately restrictive policy.