Brazil softens Selic rate but concerns grow about fiscal stimulus on election year and impact of El Niño

Brazil’s central bank interest rate-setting committee, Copom, ‌unanimously voted on Wednesday to lower its benchmark Selic rate by 25 basis points to 14.25%, a level last seen in May 2025, ‌but acknowledging a tougher inflation outlook given the risks from election-year fiscal stimulus and the impact of a likely El Nino weather pattern shock.