Brazil central bank pauses at 13.75pc, cites war risks

Argus Media · Argus Media · 2026-11-04 23:06 UTC

Brazil's central bank held its target rate unchanged at 13.75pc on Wednesday, citing "prolongation" of conflicts in the Middle East and their impacts on energy prices and more restrictive monetary policy in advanced economies.

Policymakers paused after cutting by a quarter point in September, a fifth consecutive cut that brought the rate down from a cyclical high of 15pc in March, where it had held since June 2025, as policymakers battled to bring down inflation. The target rate at 15 was its highest rate since 2006.

"The external environment has become more adverse given the prolongation of armed conflicts, with upward impacts on oil and derivatives, and a more restrictive monetary policy in advanced economies," policymakers said in their statement. "Such a scenario requires greater caution on the part of emerging economies."

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