Brazilian central bank hikes rates by 25 bps to 15%

[Brazil Rio de Janeiro aerial view with Guanabara Bay and Sugar Loaf at night]
Grafissimo

Brazilian central bank's monetary policy committee, known as Copom, decided to raise [https://www.bcb.gov.br/en/pressdetail/2615/nota] the benchmark Selic rate by 25 basis points to 15% p.a.

"The global environment remains adverse and particularly uncertain due to the economic policy and economic outlook in the United States, mainly regarding its trade and fiscal policies and their effects," said the central bank in a June 18 statement.

"In addition, the behavior and the volatility of different asset classes have also been impacted, altering global financial conditions. This scenario continues to require caution from emerging market economies amid escalation of the geopolitical tensions," added the statement.

"Regarding the domestic scenario, the set of indicators on economic activity and labor market is still showing some strength, even though we observe some moderation in growth. In recent releases, headline inflation, and measures of underlying inflation remained above the inflation target," said the central bank.

The current rate hike marks the seventh consecutive increase by Copom, reaching the highest level since July 2006, according [https://www.reuters.com/world/americas/brazil-central-bank-raises-rates-by-25-bps-seventh-straight-hike-2025-06-18/] to a report by Reuters.

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