Brazil’s Central Bank opens the second half with the Selic rate starting at 14.25% and markets pricing in another 0.25 point cut. The direction of the cycle is set, but room for further cuts by December keeps shrinking.

Markets have revised inflation expectations downward for 2026 once again, signaling greater confidence in price stability despite persistently high interest rates and moderate economic growth.

In 2025, a high interest rate environment reshaped the investment market, making capital more selective and reinforcing the importance of strong fundamentals, financial discipline, and a long-term perspective in business decisions.