Brazil cuts Selic rate to 14.25% for third straight meeting, raises growth forecast

The central bank's easing cycle continues as policymakers signal confidence in incoming fiscal stimulus, supporting a rebound in local equity sentiment.

By Handelsavisen Newsroom · Automated 2026-06-25 20:15 UTC · 1 min read

Brazil’s central bank lowered its benchmark Selic interest rate by 25 basis points to 14.25% on Thursday, marking the third consecutive reduction in its monetary policy cycle.

The decision aligns with market expectations for a gradual easing path as inflation pressures remain contained.

7% real-term increase year-on-year, according to data from the Receita Federal.

In a notable shift in tone, the monetary policy committee also upgraded its economic growth forecast, citing the anticipated impact of new fiscal stimulus measures.

This upward revision suggests policymakers are increasingly confident that recent government initiatives will bolster domestic demand without reigniting inflationary pressures.

The rate cut comes against a backdrop of improving fiscal metrics.

Brazil’s federal government recently reported record tax collections of BRL 266.8 billion in May, a 10.7% real-term increase year-on-year, according to data from the Receita Federal.