LatinNews Daily - 8 May 2025

*The monetary policy committee (Copom) of Brazil’s central bank (BCB) has raised the country’s benchmark interest rate (Selic) from 14.25% to 14.75%. This latest rise of 50 basis points comes after three consecutive 100-basis-point rate hikes. In its latest statement, the Copom included its inflation forecast, projecting an annual rate of 4.8% for 2025, down from its previous forecast of 5.1% in March. On 5 May the BCB also released the latest edition of its Focus bulletin, a weekly survey containing the economic forecasts of private sector economists and analysts, which projected that the Selic would close this year at 14.75%. However, even though the slower rate hike could suggest that the Copom is shifting towards a less hawkish monetary policy stance, reports in the Brazilian media have highlighted that it has been nearly two decades since the Selic stood at 14.75%; the last time the benchmark interest rate reached this point was in 2006.

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