The Ibovespa fell 1% to close at 183,966 on Thursday after a volatile session marked by broad-based losses and an unfavorable external environment. US Treasury yields rose to multi-decade highs as expectations of another Federal Reserve interest-rate increase this year strengthened, while crude oil and global yields remained volatile with an upward bias. The BCB said the recent oil-price shock had not yet generated significant inflationary pass-through through indirect effects on Brazil’s economy, although it was directly affecting prices. The central bank lowered its 2026 GDP growth forecast to 1.8% from 2.0% in June and projected 1.4% growth in 2027, below the government’s 2.3% projection. BCB officials said weaker activity was needed for inflation to converge to the 3% target, while Governor Gabriel Galipolo warned against false precision amid unusually high uncertainty and said signs of slowing activity were becoming clearer. The BCB also outlined planned macroprudential measures to curb aggressive lending and predatory credit, citing 65% credit-card delinquency as evidence of a product design flaw. Separately, the federal government reduced the 2026 budget spending block by R$1.9 billion, leaving R$16.1 billion blocked. BB fell 2.8%, Axia lost 1.6%, Vale declined 1.1% as higher freight costs pressured iron-ore exports to Asia, and Petrobras dropped 0.7% despite higher oil prices.