Brazil’s central bank lowered its key Selic rate by 50 bps to 12.75%, marking the second consecutive cut. The rate cut aims to anchor inflation within target levels over a significant horizon, with the bank anticipating similar cuts in upcoming meetings. Inflation data are easing but remain above target, prompting the bank to maintain a strategy tied to the disinflationary process. Economic activity has been more resilient than initially thought, though the bank projects a deceleration in the coming quarters.