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Brazil Central Bank cuts Selic rate to 13.75% per year FAST-MOVING
The Monetary Policy Committee (Copom) of the Central Bank of Brazil has unanimously decided to reduce the Selic rate by 0.25 percentage points, bringing it to 13.75% per year. This marks the fifth consecutive reduction in the current cycle.
The decision comes amid signs of economic moderation, particularly in cyclical sectors, and a recent deflation of 0.32% in the IPCA inflation index for August. However, the committee expressed caution due to external uncertainties, including geopolitical tensions in the Middle East and the potential impact of the El Niño phenomenon on food prices.
While the rate cut is seen as a positive signal for sectors like agribusiness and real estate, industrial and labor organizations, including the CNI and CUT, have criticized the move as insufficient. They argue that the current interest rate remains too restrictive for economic recovery, noting that the real interest rate sits significantly above the neutral rate.
Entities
Banco Central do Brasil · Bank of Angola · Brazil · CNI · CUT · Central Única dos Trabalhadores · Confederação Nacional da Indústria · Copom · Diego Guillen · FIEMG · Gabriel Galípolo · Luiz Inácio Lula da Silva
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] The Selic rate was 15% per year between June 2025 and March 2026. agoranointerior.com.br · portas.com.br · esportenaredemt.com.br · www.reporterpb.com.br · www.moneyreport.com.br
- [● 15 SOURCES] The committee identified risks to inflation from the Middle East conflicts and the El Niño phenomenon. agoranointerior.com.br · esportenaredemt.com.br · www.reporterpb.com.br · www.bahianoticias.com.br · www.bandab.com.br · +4 more
- [● 6 SOURCES] The committee noted a gradual moderation in economic activity, particularly in cyclical sectors. oantagonista.com.br · www.valedopianconoticias.com.br · up6.org
- [DISPUTED] This is the fifth consecutive reduction of the Selic rate. agoranointerior.com.br · portas.com.br · esportenaredemt.com.br · www.metro1.com.br · www.reporterpb.com.br · +24 more
- [● 10 SOURCES] The IPCA inflation index recorded a deflation of 0.32% in August. esportenaredemt.com.br · www.metro1.com.br · www.reporterpb.com.br · www.moneyreport.com.br · diariodosudoeste.com.br · +3 more
- [● 3 SOURCES] The decision aims to smooth economic activity fluctuations and favor full employment. www.diariodocentrodomundo.com.br
- [● 10 SOURCES] The inflation target is 3%, with a tolerance range of 1.5 percentage points. esportenaredemt.com.br · www.moneyreport.com.br · oantagonista.com.br · www.atibaia.com.br · www.jcatibaia.com.br · +3 more
- [DISPUTED] The Monetary Policy Committee (Copom) unanimously reduced the Selic rate by 0.25 percentage points to 13.75% per year. agoranointerior.com.br · portas.com.br · esportenaredemt.com.br · www.metro1.com.br · www.reporterpb.com.br · +23 more
- [● 5 SOURCES] The magnitude total of the calibration cycle will be established in light of new information. www.diariodocentrodomundo.com.br · agoranointerior.com.br
- [○ 1 SOURCE] The Brazilian real interest rate is at 8.45% per year. sbtnews.sbt.com.br
- [● 7 SOURCES] The CNI considered the 0.25% reduction insufficient. www.atibaia.com.br · sitedaserra.com.br · www.araucarianoar.com.br · www.jcatibaia.com.br · ejornais.com.br · +1 more
- [○ 1 SOURCE] The number of people in debt increased by only 0.06% in August 2026. guarulhosweb.com.br