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.