MNI BRIEF: BCB's Copom Keeps Rates At 15%, Holding Ahead

The Central Bank of Brazil (BCB) unanimously decided to hold its official Selic rate at 15.00% Wednesday, saying that the "interruption of the rate hiking cycle" will continue in further meetings to "examine its yet-to-be-seen cumulative impacts."

The decision came amid increasing uncertainty around U.S. trade policy with the imposition of a 50% tariff — with some exceptions — starting August 6. (See MNI INTERVIEW: Brazil Must Keep Negotiating On Tariffs -Barral)

"The Committee has been closely monitoring the announcements on tariffs by the USA to Brazil, which reinforces its cautious stance in a scenario of heightened uncertainty," the statement said.

The Monetary Policy Committee (Copom) ended its tightening cycle after seven consecutive increases, bringing the rate to its highest level since 2006. The decision was in line with market expectations.

The board had signaled the end of its tightening cycle at its June decision, when the Monetary Policy Committee (Copom) raised rates by 25 basis points to 15.00%.