Brazil’s central bank has lowered its benchmark Selic interest-rate target by 0.25 percentage point, taking it from 14.00% to 13.75% a year.
The decision was made at the Monetary Policy Committee’s, or Copom’s, 281st meeting on September 16, 2026. The new target took effect on September 17, according to the Banco Central’s official historical-rate table.
It was Copom’s fifth consecutive rate reduction this year. Reuters reported that the committee did not commit in advance to further cuts, leaving its next steps open amid uncertainty.
What happened
The September decision followed a sequence of reductions recorded by the central bank. Copom set the target at 14.75% on March 18, then lowered it to 14.50% on April 29, 14.25% on June 17 and 14.00% on August 5.
The move from 14.00% to 13.75% is therefore a quarter-percentage-point cut from the target established at the committee’s previous meeting.
Why it matters
The Selic is Brazil’s benchmark interest rate and is closely watched by financial markets. Changes to the target can potentially affect domestic credit conditions, investor expectations, capital flows and the Brazilian real.
For international investors, the decision extends a sustained easing cycle while preserving uncertainty over its pace and duration. Reuters described the September meeting as Copom’s final rate decision before Brazil’s October 2026 presidential election.
Copom’s choice not to pre-commit to subsequent reductions means market participants will have to assess future decisions as they are made rather than rely on a stated path for the rate.
By the numbers
- 13.75%: the new annual Selic target, effective September 17, 2026.
- 0.25 percentage point: the size of the September reduction.
- 14.00%: the target in place immediately before the decision.
- Five: consecutive Copom rate cuts from March through September 2026.
- 281st: the Copom meeting at which the September decision was taken.
The bigger picture
The latest move continues a series of incremental reductions rather than a single large adjustment. Across the five decisions recorded from March to September, the Selic target fell from 15.00% to 13.75%, a cumulative decline of 1.25 percentage points.
The central bank’s official rate history confirms the timing and size of each reduction. Reuters’ reporting indicates that, despite the fifth straight cut, Copom kept its options open for the meetings ahead.
What happens next
No further rate move was pre-announced in the verified information available. The next direction of the Selic target will depend on future Copom decisions.