Brazil's Central Bank Cuts Key Rate to 14% for a Fourth Straight Meeting
- ▸Brazil's central bank, the Copom, unanimously cut its benchmark Selic rate by a quarter point to 14.00% on August 5, 2026, the fourth consecutive reduction in a cycle that has now trimmed rates by 100 basis points since March.
- ▸The bank left its next move open, saying future cuts depend on incoming data, and flagged elevated risks from Middle East conflict spillover into asset and commodity prices and from unresolved monetary-policy paths in major advanced economies.
- ▸Copom modestly lowered its 2026 inflation forecast to 5.1% from 5.2% and nudged its 2027 forecast up to 3.8% from 3.7%, with both projections still running above Brazil's inflation target.
Brazil's central bank cut interest rates again on August 5, 2026, lowering its benchmark Selic rate by a quarter of a percentage point to 14.00% a year. It was the fourth rate cut in a row from the Monetary Policy Committee, known as Copom, which has now brought rates down by a full percentage point since it started easing in March.
All seven Copom members backed the move unanimously. The committee pointed to a gradual, but still resilient, slowdown in Brazil's economy and to inflation that is cooling, even though it remains above the government's target range. Brazil's short-term consumer inflation gauge, the IPCA-15, rose 4.52% over the twelve months to July.
Global risks were also on Copom's mind. The bank cited ongoing uncertainty from the Middle East conflict and unclear monetary-policy paths in major developed economies as reasons for caution. Rather than signal what comes next, Copom said the size of any further rate cuts will depend on new data, leaving investors guessing about whether the easing cycle continues at its September 15-16 meeting.
The bank also nudged its own inflation forecasts: down slightly for 2026, to 5.1%, but up a touch for 2027, to 3.8% — both still above target.
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Cite This Article
EconoLens Editorial Team. (2026, August 10). Brazil's Central Bank Cuts Key Rate to 14% for a Fourth Straight Meeting. EconoLens. https://www.econolens.co.in/news/brazil-copom-cuts-selic-rate-14-percent-august-2026
The EconoLens editorial team covers global macroeconomics, monetary policy, fiscal policy, and international trade. All content is AI-assisted and fact-checked.