Brazil's central bank may factor 2026 election into decisions, director says

BY Reuters | ECONOMIC | 09/26/25 11:15 AM EDT

SAO PAULO, Sept 26 (Reuters) - Brazil's central bank could take the country's 2026 presidential election into account in its monetary policy decisions if it has an impact on market prices, the local currency or inflation, director Diogo Guillen said on Friday.

Speaking at an event hosted by Citi, Guillen cautioned that policymakers always set their debates around the goal of bringing inflation back to the 3% target, and added that the central bank still sees a high level of uncertainty. (Reporting by Fernando Cardoso; Editing by Gabriel Araujo)

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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