{"url":"https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15/","title":"Brazil Bank's Caution Pays Off Amid Uncertainties","domain":"reuters.com","imageUrl":"https://images.pexels.com/photos/8078059/pexels-photo-8078059.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"Brazil central bank","category":"Entertainment","language":"en","slug":"015a8401","id":"015a8401-c320-412e-9456-ac5d5ffe9277","description":"Brazil's central bank director says the bank's cautious policy approach amid rising uncertainties has worked well.","summary":"## TL;DR\n- Brazil's central bank director says the bank's cautious policy approach amid rising uncertainties has worked well.\n- After holding the **Selic rate** at **15%**, the bank started easing with a **25 basis point** cut in March.\n- The strategy lets the bank assess all economic data calmly before acting, keeping inflation on track toward **3%**.\n\n## The story at a glance\nBrazil's central bank monetary policy director **Nilton David** said the bank's cautious stance amid rising uncertainties, including the U.S.-Israeli war on Iran, has paid off. He spoke at a JPMorgan event in Washington on April 15, 2026. This comes after the bank began cutting rates in March following months of holding them high to fight inflation.[[1]](https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15/)[[2]](https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15)\n\n## Key points\n- Uncertainties include the U.S.-Israeli war on Iran, which has added global risks like oil shocks.\n- Bank's approach avoids reacting to single data points and instead reviews all economic indicators calmly.\n- Held benchmark **Selic rate** at **15%**, a near two-decade high, for months to curb inflation.\n- Started easing cycle in March with a **25 basis point** cut to **14.75%**, described as cautious.\n- Remains committed to restrictive policy to bring inflation back to the **3%** target.\n- Policymakers see signs the current stance is effective and stand ready for any scenario.[[1]](https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15/)\n\n## Details and context\nThe central bank fought persistent inflation pressures from government stimulus and a tight labor market. Global events like Middle East conflicts have raised oil prices and inflation risks, prompting the careful path.\n\nThis follows a March decision where the bank stressed \"serenity and cautiousness\" in policy to account for conflict duration.[[3]](https://www.reuters.com/world/americas/brazil-central-bank-kicks-off-easing-with-cautious-25-bp-cut-after-oil-shock-2026-03-18) Earlier high rates built confidence that the stance could anchor inflation expectations.\n\nDavid's remarks signal growing comfort with gradual easing while staying data-dependent.\n\n## Key quotes\n\"The approach currently adopted by Brazil's central bank of operating with caution amid rising uncertainties... has paid off.\" – **Nilton David**, monetary policy director, at JPMorgan event.[[2]](https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15)\n\n\"[The bank] does not take action based on a single piece of data, but has the calm to assess the construction of all economic indicators available.\" – **Nilton David**.[[2]](https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15)\n\n## Why it matters\nRising global uncertainties test central banks worldwide, and Brazil's experience shows how caution can steady inflation control. Investors and businesses gain from predictable, data-driven rate moves that avoid overreactions. Watch upcoming meetings for signs of further cuts or pauses if inflation data or geopolitics shift.","hashtags":["#brazil","#economy","#centralbank","#inflation","#monetarypolicy","#geopolitics"],"sources":[{"url":"https://www.reuters.com/world/americas/brazil-central-banks-caution-has-paid-off-amid-rising-uncertainties-director-2026-04-15/","title":"Original article"},{"url":"https://www.reuters.com/world/americas/brazil-central-bank-kicks-off-easing-with-cautious-25-bp-cut-after-oil-shock-2026-03-18","title":""}],"viewCount":2,"publishedAt":"2026-04-16T20:21:35.649Z","createdAt":"2026-04-16T20:21:35.649Z","articlePublishedAt":null}