MNI Brazil CB Review – April 2026: Another Cautious 25bp Cut

Hidden PDF

Executive Summary

• At its April meeting, the Copom decided unanimously to cut the Selic rate by 25bp to 14.50%, in line with expectations.
• In a largely unchanged statement, the committee remained cautious amid unanchored inflation expectations and uncertainty around the conflict in the Middle East and did not provide any guidance on the size of the next rate cut.
• Most analysts expect another 25bp cut in June, with some looking for a 50bp move, but risks of a shallower easing cycle beyond that are increasing.