Brazil central bank expected to hold rates in January before starting cuts in March

Economists predict the Selic rate will stay at 15 percent in January before a March reduction. The shift aims to support growth ahead of the October elections.

Insights:
Brazil's central bank is expected to maintain its benchmark Selic rate at 15% on January 28, but a consensus of economists suggests a pivot toward easing will begin in March. According to a Reuters poll conducted between January 19 and January 22, 2026, the shift would mark the first reduction in borrowing costs for the nation in nearly two years. This anticipated policy change in Brazil BRBRcomes as inflation metrics improve and the government introduces stimulus measures to support consumption ahead of the upcoming presidential election.
A drone view shows the Central Bank headquarters building in Brasilia, Brazil, December 26, 2024. REUTERS/Ueslei Marcelino
A drone view shows the Central Bank headquarters building in Brasilia, Brazil, December 26, 2024. REUTERS/Ueslei Marcelino
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