Brazil's Financial Morning Call for Thursday, September 17, 2026
The move was broadly expected, and traders now see December as a coin flip between a pause and another quarter-point cut.
- On Wednesday, Brazil's central bank cut the Selic benchmark interest rate by a quarter-point to 13.75%, the fifth consecutive reduction in a cycle that began at 15%.
- Market-Implied odds on B3 options settled near 95% for this unanimous decision, as Copom maintains a data-dependent approach to its ongoing easing cycle.
- The USD/BRL exchange rate remains near the strong end of its 52-week band; traders are watching the 5.10 support level to gauge if local rate relief outweighs global dollar strength.
- Adjusting diesel reference prices, Petrobras plans to neutralize the impact with government subsidies, leaving pump economics unchanged as investors weigh the broader corporate landscape.
- Regarding the December meeting, opinions are split between a pause and one final rate cut, with inflation data and US industrial production likely to determine the central bank's next move.
35 Articles
35 Articles
Two weeks to Brazilian presidential election, Central Bank cuts interest rate for the fifth time running
With presidential elections in two weeks’ time, Brazil’s central bank cut its benchmark interest rate for the fifth straight time. The bank lowered the so-called Selic rate from 14% to 13.75%, and is part of a cycle that began in March after almost two years of rate hikes.
The Selic rate, one of the highest in the world, fell from 14% to 13.75%, reported the Monetary Policy Committee (Copom) in a statement. The cut was widely expected by more than a hundred financial institutions and consulting firms surveyed by the newspaper Valor Económo. The Copom’s decision occurs in contrast to the one taken Wednesday by the US Federal Reserve to raise 0.25 points its interest rates to contain inflation, something that it did…
Brazil Cuts Interest Rate to 13.75% as Tight Election Clouds Outlook
Brazil’s central bank cut its benchmark interest rate by a quarter-point as inflation slows and the economy loses momentum, just weeks before a tight presidential election that is fueling uncertainty over how much further policymakers can ease.
The Central Bank's (CB) Monetary Policy Committee (Copom) decided, on Wednesday (16), to cut the economy's basic interest rate by 0.25 percentage point, reducing Selic from 14% to 13.75% per year. This is the fifth consecutive cut of the rate. The decision was unanimous. The economy's basic interest rate is the BC's main instrument to try to contain inflationary pressures, which have effects mainly on the poorest population. As decisions are mad…
Weaker activity helps, but does not renew expectations alone
Coverage Details
Bias Distribution
- 43% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
