Brazil’s central bank raised its key interest rate by 1 pp to 14.25%, the highest level since October 2016. This move is in response to resilient inflation and signs of an economic slowdown. The bank expects a smaller hike at its next meeting due to ongoing inflation challenges and economic uncertainty. The tightening cycle has raised rates by 3.75 pp over the last five decisions, with further tightening depending on inflation forecasts and economic data after the next meeting in May.