Business · Economy · 1 day ago
Brazil central bank holds interest rate at 13.75% as outlook worsens
Brazil’s central bank kept its benchmark interest rate at 13.75%, pausing a series of cuts that began in March 2026.
The decision was made by the bank’s Monetary Policy Committee, known as Copom.
Former central bank chief Gustavo Loyola said the pause was cautious and appropriate, pointing to worsening economic expectations, pressure on the exchange rate and higher inflation expectations.
Uncertainty about Brazil’s public finances is a key concern, because doubts about how the government will manage its debt can keep inflation expectations high.
Loyola said persistently weak expectations could make it harder for the bank to lower interest rates.
He also warned that raising the inflation target could damage confidence in the bank’s commitment to controlling prices.
The outlook for 2027 remains uncertain, and the central bank has not signaled that rate cuts are over for good.
Brazil’s central bank held its benchmark interest rate at 13.75%, ending a series of cuts that began in March 2026.
Former central bank president Gustavo Loyola said the decision was cautious and correct.
He cited worsening macroeconomic conditions, including weaker expectations for the exchange rate and inflation.
Loyola said uncertainty over fiscal policy and public accounts was a major concern.
He said the outlook for 2027 remained open and that the central bank could not yet signal an end to the rate-cut cycle.
- Who
- Brazil’s Central Bank Monetary Policy Committee (Copom) held the rate. Former central bank president Gustavo Loyola commented on the decision.
- What
- The central bank kept its benchmark interest rate at 13.75%, interrupting a series of cuts.
- When
- Not stated. The article was published on 2026-11-08.
- Where
- Brazil.
- Why
- The article cites worsening macroeconomic conditions, inflation expectations and exchange-rate concerns. Loyola also pointed to uncertainty over fiscal policy.
This story does not have two clearly opposing sides.
The series of interest-rate cuts began.
The article reported that the central bank had held the benchmark rate at 13.75%, interrupting the series of cuts.
- Benchmark interest rate
- 13.75%
- Policy committee
- Copom (Monetary Policy Committee)
- Rate-cut series began
- March 2026
- Former central bank president quoted
- Gustavo Loyola
- Article publication date
- 2026-11-08
3 sources
What people are saying
What happened was basically a worsening of expectations, a worsening of the macroeconomic scenario, mainly the exchange rate, and a worsening of inflation expectations, already reflected, including, in the FOCUS survey.
Brazil’s macroeconomic Achilles’ heel is public accounts, and without a solution to stabilize debt as a proportion of GDP, expectations will tend to remain very deteriorated and interest rates will not fall.
A weakness, or whatever is perceived as a weakness by the Central Bank, could unanchor expectations, which would be very bad from the point of view of monetary policy going forward.
In the short term, an increase in external interest rates is bad for Brazil.