Copom lowered the benchmark from 14.25% on Wednesday as cooling inflation opened room for easing, while warning uncertainty around inflation remains elevated amid Middle East conflicts.
Brazil’s central bank lowered its Selic benchmark lending rate to 14% from 14.25% on Wednesday, marking a fourth consecutive cut as inflation cools and high borrowing costs continue to weigh on the economy. The decision by Copom (the bank’s monetary policy committee) was widely expected. Even so, the central bank signaled that uncertainty in its inflation outlook remains higher than usual, particularly because of conflicts in the Middle East, underscoring that policymakers still see risks around the path of prices.