Brazil Keeps Benchmark Interest Rate at 15% Amid Inflation Concerns

Brazil’s central bank has decided to maintain its benchmark interest rate at 15 percent on Wednesday, as the country continues efforts to contain inflation, which remains above the official target.

The rate, one of the highest in the world, has been held at this level since July following a sequence of seven consecutive hikes.

In a statement, the central bank’s Monetary Policy Committee (COPOM) described its stance as “cautious,” citing the “high uncertainty” stemming from tariffs imposed by the United States on certain Brazilian goods.

Although inflation in Brazil has shown signs of slowing in recent months, it rose slightly in September to 5.17 percent year-on-year, exceeding the upper limit of the official target rate of 4.5 percent. Food prices have fallen for a fifth consecutive month, but rising costs in sectors such as energy continue to exert pressure on overall inflation.

The decision represents a setback for the government of leftist President Luiz Inácio Lula da Silva, who has repeatedly urged a reduction in interest rates to stimulate Latin America’s largest economy.

Financial institutions consulted by the central bank have lowered their 2025 inflation forecast to 4.55 percent, with most expecting the benchmark rate to remain at 15 percent until the end of this year or the beginning of 2026.

Brazil’s economy is projected to grow by 2.4 percent this year, higher than earlier expectations but a decline from the 3.4 percent growth recorded in 2024, according to estimates published by the International Monetary Fund in October.