Business · Markets · 4 hrs ago
Brazil’s central bank holds interest rate at 13.75% amid uncertainty
Brazil’s central bank kept its benchmark interest rate at 13.75% at its meeting on Wednesday, Nov.
4.
The decision comes as the economy grows more slowly and financial conditions remain tight.
The bank faces uncertainty over inflation, global interest rates and oil prices, while investors are watching how President Lula’s government manages public spending.
Cutting rates too quickly could push up market borrowing costs, the dollar and inflation, while holding them high could add to pressure on the economy.
Lula is expected to stress prudent spending in a televised address on Sunday.
Some major banks expect the rate to stay unchanged into the middle or later part of next year, and the central bank’s next three meetings are being watched for possible cuts.
Brazil’s central bank kept its Selic benchmark interest rate at 13.75% at a Wednesday meeting.
The bank cited a significant increase in uncertainty around its baseline economic outlook.
The article says inflation expectations remain elevated and uncertainty over government public finances may affect the currency and inflation expectations.
It also points to uncertainty about interest rates in major economies and oil prices.
Some large banks expect the Selic rate to remain unchanged until the middle or end of next year.
- Who
- Brazil’s central bank.
- What
- It kept the Selic benchmark interest rate at 13.75%.
- When
- Wednesday (4); the article was published on November 5, 2026.
- Where
- Brazil.
- Why
- The bank cited increased uncertainty around its baseline outlook. The article also points to inflation expectations and uncertainty about public finances and external conditions.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Selic rate
- 13.75%
- Decision
- Rate held unchanged
- Meeting
- Wednesday (4)
- Publication date
- November 5, 2026
- Outlook
- Central bank cited increased uncertainty around its baseline scenario
What people are saying
a significant increase in uncertainties around the baseline scenario