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Brazil central bank cuts rates by 25 bps at fourth straight meeting

Created at 5 Aug · 9:47 PM1 source↑ Market-relevant
IN SHORT

Brazil's central bank cut its benchmark Selic rate by 25 basis points to 14.00%, marking the fourth consecutive reduction. The decision aligns with analyst expectations and signals a continued easing cycle amid slowing inflation and economic cooling.

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Key Numbers

25 bpsinterest rate cut
14.00%benchmark Selic rate
4consecutive rate cuts
38 of 42analysts polled expected the cut

Who's Involved

Brazil's central bank
cut interest rates by 25 basis points
Copom
Brazil's rate-setting committee that unanimously cut the Selic rate
Marcela Ayres
Reuters reporter
Brad Haynes
Reuters editor
Brazil central bank cuts rates by 25 bps at fourth straight meeting

↳ Why This Matters

The decision signals a continued monetary easing cycle in Brazil, influenced by moderating inflation and economic slowdown, which could impact borrowing costs and economic activity within the country.

Key facts

  • Brazil's central bank cut its benchmark Selic rate by 25 basis points.
  • The Selic rate now stands at 14.00%.
  • This is the fourth consecutive meeting where the central bank has lowered interest rates.
  • The decision was unanimous by the bank's rate-setting committee (Copom).

Brazil's central bank on Wednesday reduced its benchmark interest rate by 25 basis points to 14.00%, marking the fourth consecutive policy meeting where it has implemented a cut. The decision by the bank's rate-setting committee, Copom, was unanimous and met the expectations of most analysts surveyed by Reuters.

The move extends the bank's easing cycle, driven by recent data indicating slower inflation and a cooling economy. The current rate of 14.00% is the lowest level since March 2025.

Frequently asked questions

Brazil's benchmark Selic rate has been cut to 14.00%.

This is the fourth consecutive policy meeting where the central bank has cut interest rates.

Brazil's rate-setting committee is called Copom.

What Happens Next

01The central bank may consider further cuts in future meetings.

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Cadence
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How It Developed

Brazil's central bank cut interest rates by 25 basis points.
The benchmark Selic rate was lowered to 14.00%.
This marks the fourth consecutive policy meeting with a rate cut.
The decision was unanimous among the bank's rate-setting committee members.

Sources

T1
Brazil central bank cuts rates by 25 bps at fourth straight meetingReuters
T2
Brazil Central Bank Lowers Interest Rate to 14% - Bloombergbloomberg.com

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