Category: Brazil

US-Brazil relations continue to be fractious after President Trump announced additional tariffs linked to domestic political affairs within Brazil, and Brazil has now countered by launching a dispute at the WTO. Inflation has fallen, but has been bumpy this year so August’s figures will be key. Employment continues to improve, although job creation won’t match…

In July US-Brazil relations took a nosedive, propelling US tariffs on Brazilian products to a new high commencing 1st August. Brazil is now considering its retaliatory options. Stubborn inflation rose in June compared to May and the BCB propelled the SELIC rate a further 25bp to now 15% in response. US Relations, Visas, and Tariffs…

Brazil Macro Brief: June 2025 A visit by an IMF team in late May and early June provided a timely check-in on Brazil’s macro progress and its policy path ahead. Meanwhile, the new Economic Reciprocity Law has given the government fresh powers to hit back against unilateral foreign measures. That includes not only sanctions but…

Another hike in the Selic rate, now at its highest since 2006. A slight drop in inflation. And a sharper-than-expected rise in unemployment. On trade, the government has imposed a range of protectionist tariffs to support domestic manufacturing, while concerns are mounting over the potential for Chinese goods to flood the market in the wake…

Stubborn inflation has prompted not one but two 100bps interest rate rises in the year so far, with the base rate now standing at its highest level since 2016 at 14.25%. The BCB is moving to align the Brazilian financial landscape with international standards with updated methodology and oversight requirements and proposals.… Read the rest