LatinNews Daily - 05 November 2026

*The monetary policy committee (Copom) of Brazil’s central bank (BCB) has maintained the benchmark interest rate (Selic) at 13.75%. This marks an end to the rate-cut cycle which had seen five consecutive cuts to the Selic since March this year. In a Copom statement yesterday announcing the decision to hold the Selic, the committee highlighted a range of inflationary risks, including supply-side shocks related to oil prices, and adverse climate effects impacting agricultural production, as well as “stimulus to aggregate demand”. The statement did not explicitly criticise spending by the government led by President Luiz Inácio Lula da Silva but states that it would “continue monitoring how domestic fiscal policy developments impact monetary policy and financial assets”. Since Lula won re-election on 25 October, media reports have highlighted renewed debate over the government’s fiscal policy and its implications for inflation and interest rates. Over the past week, some left-wing allies of Lula have criticised the high Selic rate and defended public spending on social welfare programmes. Meanwhile some media outlets, such as Reuters, have suggested that Lula is expected to signal a greater commitment towards fiscal discipline. A Reuters report published yesterday citing two anonymous sources with direct knowledge of the matter said that Lula is expected to deliver a TV address on 8 November in which he will recommit to budget discipline but “without providing policy details”.