LatinNews Daily - 06 August 2025

*The monetary policy committee (Copom) of Brazil’s central bank (BCB) has released the minutes from its meeting on 29-30 July, in which the committee highlighted the uncertainty regarding the imposition of US trade tariffs on Brazil. On 30 July the Copom halted the rate hike cycle that had been ongoing since September 2024, holding the country’s benchmark interest rate (Selic) at 15.0%. On the same day US President Donald Trump signed an executive order to impose a 50% tariff rate on many Brazilian products. However, some key Brazilian exports to the US, including crude oil, aircraft, and orange juice, are subject to a lower tariff rate of 10%. In the latest Copom statement, the committee warned that US tariffs could have “significant sectoral impacts” but the “aggregate impacts” are still uncertain. According to the statement, this uncertainty means that the Copom should remain cautious in its monetary policy approach, and the Selic will likely remain at 15% for a “prolonged period”.

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