Weekly Report - 19 March 2026 (WR-26-11)

After holding the benchmark interest rate (Selic) at 15.0% since July last year, the central bank (BCB) decided on 18 March to lower the rate by 25 basis points. High interest rates had hindered Brazil’s economic activity in 2025, and economists had long expected that the 2026 would see the Selic come down, but the BCB is also likely to remain cautious over persistent inflation risks, especially due to the volatility in oil prices.