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LatinNews Daily - 31 July 2025

In brief: Brazil’s central bank halts rate hike cycle

*The monetary policy committee (Copom) of Brazil’s central bank (BCB) has held the country’s benchmark interest rate (Selic) at 15.0%. Until yesterday the Copom had increased the Selic rate in every meeting since September 2024. In the Copom statement released yesterday, the committee said it expects a “continuation of the interruption” of the rate hike cycle and suggested that the Selic could remain at this level for a prolonged period. The latest Copom forecasts predict annual inflation of 4.9% for 2025 and 3.6% for 2026. The latest edition of the Focus bulletin, a weekly survey of private sector economists and analysts consulted by the BCB, shows higher forecasts. Market experts project annual inflation to close this year at 5.09% and to reach 4.44% by the end of 2026.

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