Fourth Brazilian Central Bank Interest Rate Cut Since March
August 5, 2026
Four 25-basis point rate cuts at the Central Bank of Brazil have lowered such to 14.0%, which still remains far above the latest 12-month 4.6% rate of consumer price inflation. Today’s reduction was decided unanimously, and more cautious downward moves are to be expected in coming months. A three percentage point inflation corridor is targeted, with a center of 3.0%. Monetary officials, according to today’s statement, anticipate resilient but slowing economic growth. Officials observe
The global environment remains uncertain due to the lack of definition regarding the armed conflicts in the Middle East and uncertainty surrounding monetary policy in some advanced economies.
And go on to note that
Inflation projections for the first quarter of 2028, currently the relevant horizon for monetary policy, stand at 3.2% in the reference scenario. The risks to inflation, both to the upside and to the downside, remain higher than usual, with an upward asymmetry. The current scenario, marked by heightened uncertainty, deanchoring of expectations, and elevated risks surrounding the reference scenario, requires serenity and cautiousness in the conduct of monetary policy.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: Central Bank of Brazil
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