Brazil Cuts SELIC

Country has a fiscal problem that needs to be improved; I still think there's room for further interest rate cuts, but that's the central bank's prerogative. ** note: Follows June 17 Copom decision to cut Selic by 25 bps to 14.25%, after it had been 14.50%.

The comment is broadly in line with the government’s prior stance favoring continued easing, but comes as market expectations have recently become more cautious: the latest Focus survey cited by Agência Brasil saw year-end 2026 Selic at 13.5%, versus 13.75% the prior week, while other recent reports showed analysts had been reducing expectations for aggressive cuts.