Brazil's Copom Raises Selic Rate to 14.75% as Tightening Cycle Slows

Brazil's Monetary Policy Committee, known as Copom, raised the Selic benchmark interest rate by 50 basis points to 14.75% at its May 2025 meeting, slowing from the 100-basis-point increments of earlier stages of the current tightening cycle. The committee said the tightening cycle was at an advanced stage and that the next meeting called for additional caution and flexibility.

POLICY STANCE

The committee said the scenario required a significantly contractionary policy for a prolonged period.