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Brazil's Haddad sees interest rate cuts coming in 'consistent, sustainable' way

BY Reuters | ECONOMIC | 09/22/25 10:02 AM EDT

SAO PAULO, Sept 22 (Reuters) - Brazil's finance minister said on Monday he believes the country's central bank will begin cutting interest rates in a "consistent and sustainable way," but did not specify when he expects a monetary easing cycle to start.

Speaking at an event hosted by BTG Pactual, Fernando Haddad said high borrowing costs cannot be solely explained by fiscal concerns. He added that Brazil's economy must grow in order to address its fiscal challenges.

Last week, the country's central bank held its benchmark interest rate at a near two-decade high of 15% as its seeks to bring inflation back to its 3% target, and signaled it would keep it unchanged for a long time. (Reporting by Fernando Cardoso; Editing by Gabriel Araujo)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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