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Brazil's central bank says it is more confident in rate-hold strategy

BY Reuters | ECONOMIC | 11/11/25 06:16 AM EST

BRASILIA, Nov 11 (Reuters) - Brazil's central bank said on Tuesday that, as the economic outlook has evolved largely as expected, it now has greater confidence that the current 15% benchmark interest rate is sufficient to ensure inflation converges to target.

In the minutes of its latest policy meeting last week, when it kept the Selic rate unchanged for the third consecutive time, the bank said it had decided to incorporate the impact of a government measure expanding income tax exemptions into its inflation forecasts, while stressing that the effect remains "highly uncertain." (Reporting by Marcela Ayres; Editing by Andrew Heavens)

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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.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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