Brazil cuts its interest rate to 13.75% on the same day the U.S. raises its own

Brazil cuts its interest rate to 13.75% on the same day the U.S. raises its own

Brazil's central bank decides its basic interest rate today. That rate is the Selic, the price of money in the country, and it sets how much a loan costs. The decision belongs to the Copom, the central bank's monetary policy committee, which brings its directors together.

The announcement comes after 18:00, Brasilia time. So, this morning, the decision is still pending.

Most of the market expects the rate to fall from 14% to 13.75% a year. It would be the fifth cut in a row, and the fifth one of a quarter point. It would also be the last one before the presidential election.

If confirmed, the Selic would sit at its lowest level since March 2025, that is, in a year and a half.

A rate that is still high

Even with the cuts, in real terms the Brazilian rate is still one of the highest in the world. In real terms means after subtracting the inflation expected for the next twelve months.

Analysts also expect a cautious statement. They believe the Copom will give no hints about whether it will keep cutting rates at the November meeting.

The cut is expected even though the war in the Middle East pushed the price of oil up. More expensive oil usually pushes prices up.

The contrast of the day

The contrast is sharp. On the same Wednesday, the U.S. Federal Reserve is set to raise its rates for the first time in three years, while Brazil cuts its own. The central banks of the two countries are walking in opposite directions.

There is one more figure from Brazil's central bank. Its economic activity index fell 0.2% in July. That is the second month in a row of decline.

Sources: G1, O Globo and Valor Economico (Brazil). September 16, 2026.