Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
Japan Economy Minister Downplays Inflation Risks Despite BOJ Warning 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
Canada-US Trade Talks Gain Momentum Ahead of Aug. 19 Tariff Deadline 
Gold Prices Rise as Weak US Data and Hormuz Risks Boost Safe-Haven Demand 
Yen Edges Higher as Weak US Data Dampens Fed Rate Hike Expectations 
Gold Prices Retreat From Two-Month High as Softer Inflation Eases Fed Rate Hike Bets 
KOSPI Eyes Best Weekly Gain Since June as Samsung, SK Hynix Rally 
Wall Street Hits Record High as Softer Inflation Data Eases Fed Rate Hike Fears 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Morgan Stanley Sees Fed Holding Rates as U.S. Inflation Cools 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Add as a preferred source on Google
Brazil’s central bank lowered its benchmark Selic interest rate by 25 basis points to 14.00% per year on Wednesday, signaling that inflation is gradually slowing while emphasizing that price pressures remain above the official target.
The Monetary Policy Committee (Copom) said headline inflation has continued to moderate, and underlying inflation indicators have eased to just below the upper limit of the target range. However, inflation expectations remain elevated. According to the latest Focus survey, analysts expect inflation to reach 5.0% in 2026 and 4.2% in 2027, both above the central bank’s target. Copom projects inflation at 3.2% in the first quarter of 2028, which serves as its key policy horizon.
Despite the rate cut, policymakers warned that inflation risks remain tilted to the upside. Key concerns include persistently high inflation expectations, stronger-than-anticipated services inflation, the impact of a weaker Brazilian real, and domestic demand growing faster than the economy’s productive capacity.
The committee also highlighted several downside risks that could support lower inflation. These include a sharper slowdown in Brazil’s economy, weaker global growth driven by trade tensions and oil market disruptions, and declining commodity prices.
Recent economic data point to a resilient economy supported by a tight labor market, although activity varies across sectors. Copom noted that global uncertainty continues to influence monetary policy decisions, citing ongoing conflicts in the Middle East and uncertainty surrounding interest rate policies in advanced economies. The central bank said these factors require emerging markets such as Brazil to remain cautious as financial markets and commodity prices continue to fluctuate.
The decision to lower the Selic rate was approved unanimously by Copom members, including Governor Gabriel Muricca Galípolo and six other committee officials. Policymakers stressed that future interest rate decisions will depend on incoming economic data and inflation trends. The central bank reiterated that the overall size of the current easing cycle will be determined by progress toward bringing inflation back to its target while maintaining economic stability.
