Despite increasingly obvious signs of economic slowdown, the Bank of Brazil kept key interest rates at their highest level in nearly two decades as inflation is expected to remain above target levels in the foreseeable future. The policy committee led by Gabriel Galipolo voted unanimously on Wednesday to keep the Selic interest rate unchanged at 15%, standing still for the fourth consecutive session, in line with the expectations of all economists surveyed by the media. Policymakers raised borrowing costs by 4.5 percentage points between September 2024 and June of this year.

Despite increasingly obvious signs of economic slowdown, the Bank of Brazil kept key interest rates at their highest level in nearly two decades as inflation is expected to remain above target levels in the foreseeable future. The policy committee led by Gabriel Galipolo voted unanimously on Wednesday to keep the Selic interest rate unchanged at 15%, standing still for the fourth consecutive session, in line with the expectations of all economists surveyed by the media. Policymakers raised borrowing costs by 4.5 percentage points between September 2024 and June of this year.