Brazil’s central bank cut the Selic rate by 50 bps to 10.75%, signaling an additional identical cut in the forthcoming meeting, hinting at smaller subsequent reductions. Despite easing the policy, inflationary pressures persist, with the central bank projecting annual inflation rates of 3.5% and 3.2% for the end of this year and the next, respectively, against a backdrop of 4.5% current annual inflation.