On August 5, local time, the Bank of Brazil's Monetary Policy Committee announced a reduction in the benchmark interest rate to 14%. This is the fourth time in a row that the Bank of Brazil has cut interest rates to their lowest point in nearly a year. Although rising oil prices are putting pressure on Brazil's inflation due to the resurgence of the Middle East conflict, the market expects the interest rate cut cycle to continue and be lowered to 13.75% by the end of 2026.

On August 5, local time, the Bank of Brazil's Monetary Policy Committee announced a reduction in the benchmark interest rate to 14%. This is the fourth time in a row that the Bank of Brazil has cut interest rates to their lowest point in nearly a year. Although rising oil prices are putting pressure on Brazil's inflation due to the resurgence of the Middle East conflict, the market expects the interest rate cut cycle to continue and be lowered to 13.75% by the end of 2026.