Brazil’s central bank maintained its key Selic rate at 13.75%. The bank’s MPC stressed patience but readiness to tighten monetary policy if disinflation stalls. It acknowledged that fluctuating inflation risks and the pending congressional approval of the final fiscal framework could influence future monetary policy decisions. As of May, the annual inflation rate fell to 3.94%, staying below the bank’s 4.75% upper target for three consecutive months. Meanwhile, Brazil’s GDP recovered with a 1.9% expansion in Q1 2023, exceeding the market forecast of 1.3%.