Brazil's Monetary Policy Committee (Copom) has cut the Selic rate by 25 basis points to 14.25 per cent per annum, its third consecutive reduction. The new rate takes effect on 18 June 2026 following the 279th meeting of the committee.
In its statement, the Copom said it judged it appropriate to continue the monetary policy calibration cycle, and reaffirmed serenity and caution in conducting monetary policy amid a sharp increase in uncertainty.
THIRD CONSECUTIVE REDUCTION
Wednesday's decision marks the third meeting in a row at which the Copom has cut the Selic. The three cuts have taken the Selic down 75 basis points from 15.00 per cent, the level at which it was held until January.
The previous two cuts, in March and April, were also of 25 basis points each.
The new 14.25 per cent setting, down from 14.50 per cent, follows what the Copom called a prolonged period of keeping the policy rate at a contractionary level. The committee said the accumulated degree of monetary restriction allows different interest-rate paths compatible with inflation converging to target.
INFLATION ABOVE TARGET
The Copom said headline and underlying inflation had accelerated in the latest releases, moving further from target and exceeding the upper limit of the tolerance range in the latest reading. Focus survey inflation expectations for 2026 and 2027 stood at 5.30% and 4.10%, and the committee's projection for the fourth quarter of 2027, the relevant horizon, was 3.7%. The committee said that, without prejudice to its fundamental objective of ensuring price stability, the decision also implies smoothing fluctuations in economic activity and fostering full employment.
The decision, taken at the Copom's 279th meeting, was unanimous, with all seven members, including Governor Gabriel Galípolo, voting in favour.
The next Copom decision is due on 5 August. The committee reaffirmed that the total magnitude of the calibration cycle will be set in light of new information to ensure inflation converges to target.