Brazil’s central bank has kept its benchmark interest rate at 15% for the fifth consecutive meeting as authorities continue efforts to curb inflation in Latin America’s largest economy.
The Monetary Policy Committee (Copom) said the decision was driven by a “still uncertain external environment,” noting the Selic rate remains at its highest level since July 2006.
However, policymakers signalled a possible easing cycle could begin at the next meeting in March.
The decision is seen as a setback for President Luiz Inacio Lula da Silva, who has repeatedly pushed for rate cuts since returning to office in 2023.
The central bank had raised the rate seven straight times between September 2024 and June 2025 before pausing hikes from July 2025.
The move came the same day the US Federal Reserve also held its benchmark rate despite political pressure for lower borrowing costs.
Brazil’s central bank warned inflation is still projected to remain above its three per cent target in 2026 and 2027, citing geopolitical risks.
Brazil’s economy has also faced external shocks, including US tariffs on Brazilian exports imposed in August, which were largely lifted in November after talks between President Lula and US President Donald Trump.
