(MENAFN) On Wednesday, Brazil’s Central Bank opted to maintain the benchmark Selic interest rate at 15 percent, ending a streak of seven consecutive hikes dating back to September 2024.

The Monetary Policy Committee, consisting of the bank’s board members, reached a unanimous decision that aligned closely with widespread market predictions.

In its official release, the committee underscored the need for prudence amid "high uncertainty" prevailing in the economic landscape. Although signaling a pause in the cycle of rate increases, the committee stressed its intent to carefully assess the cumulative impact of prior monetary tightening on inflation control.

"The committee emphasizes that it will remain vigilant and that future monetary policy steps may be adjusted. It will not hesitate to resume the tightening cycle should it deem necessary," the statement declared.

The report highlighted that Brazil’s economy remains robust, supported by ongoing labor market constraints. Nonetheless, risks persist due to an expanding fiscal deficit and volatile currency movements. Inflation targets have yet to be fully met, and additional pressures such as decelerating global growth, tariff disputes, and fluctuating commodity prices could generate imported deflationary effects.

Regarding recent U.S. tariffs imposed on Brazilian goods, the Central Bank stated it will give "particular attention" to the uncertainty these tariffs might introduce to Brazil’s economy, especially their potential influence on prices and foreign trade.

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