Overview
- The unanimous decision keeps borrowing costs at their highest since 2006 after the committee cited inflation above target and global uncertainty tied to U.S. policy.
- The central bank updated forecasts to 4.6% inflation at end‑2025, 3.6% for 2026, and 3.3% by the second quarter of 2027 in its reference horizon.
- Brazil’s ex‑ante real interest rate is estimated at 9.74%, the world’s second highest after Turkey, according to MoneYou.
- President Lula and Finance Minister Fernando Haddad pressed for cuts, yet none of Lula’s appointees on the Copom voted to reduce rates this year.
- The national industry lobby CNI condemned the hold, saying very high rates suppress investment and make consumer credit more expensive.