Brazil Central Bank Warns Iran War Stokes Inflation Risks

Brazil’s central bank warned that inflation risks intensified after war in the Middle East broke out and said future steps in its easing cycle will be determined as new information is incorporated.

“The Committee established that the magnitude and duration of the calibration cycle will be determined over time,” policymakers wrote in the minutes to their March 18 decision, when they lowered the benchmark Selic by a quarter-point to 14.75%, marking the first rate cut since 2024.