Economy · From the edition of Jul 17, 2026
✳ Dated TUESDAY, AUGUST 4, 2026 ✳
BRAZIL'S BANK BREAKS THE RATE, CUTS SELIC
Banco Central finally eases policy by a quarter-point in August
BRASÍLIA, Aug. 4 — Brazil's central bank cut the Selic rate by 25 basis points tonight, ending a long tightening cycle. Traders had priced the move at 86 percent. It was hardly a surprise.
For years the bank hiked rates hard to crush inflation. It worked. The currency steadied, prices cooled, and pressure to ease built month after month. Now the bank says the era of high rates is over. Traders bet big on a modest cut, and they were right.
Expect a slow descent, not a dive. A bolder half-point cut drew almost no bets — under 1 percent. Businesses and households want cheaper credit and faster growth. The bank warns it will act again if prices spike. But tonight, Brazil breathes easier.
Source: Polymarket · 86% probability — View market ↗