Brazil's Finance Minister Calls 15% Selic Too Restrictive, Cites IMF 'Hawkish' Label

Overview

• Fernando Haddad said the current benchmark rate is very restrictive for present conditions and that he would vote to cut if he were a director.
• He referenced an IMF analysis that places Brazil's Central Bank among the most hawkish globally.
• Haddad said inflation has been improving, with market projections pointing to a rate below 4% in 2027 and real interest estimated above 10%.
• President Luiz Inácio Lula da Silva said the Central Bank needs to start lowering rates, signaling preference from the executive without announcing policy changes.
• The Selic has been held at 15% since June, the highest since 2006, as Gabriel Galípolo's new leadership contends with early regulatory challenges.