Brazil’s central bank kept the Selic rate at 15% for a third straight meeting, signaling that a prolonged hold will help inflation converge to the target and allow smoothing of economic fluctuations.

Copom reiterated that holding rates at the current level for an extended period is intended to ensure inflation converges to target, maintaining a hawkish stance.

The decision to hold at 15.00% per year was described as consistent with inflation convergence over the policy horizon while supporting employment and smoothing the economy.

US data watched abroad, with the ADP employment report and composite/services PMI on deck, though payrolls are paused due to a government shutdown.

A US Supreme Court hearing on tariffs tied to former President Trump could influence global trade debates and supply-chain considerations.

Risks to inflation remain elevated, including potential deanchoring, stronger services inflation, and policy mix effects, alongside downside risks from weaker domestic activity and global slowdown.

Wednesday is framed as a pivotal day balancing monetary policy, macro data, and earnings to shape short-term market sentiment.

Investors will scrutinize Copom’s language for clues on future policy and external balance influenced by exchange flows and commodity prices.

Copom notes ongoing attention to US tariff announcements and domestic fiscal developments, maintaining caution amid high uncertainty.

Notes that the English version is a best effort and the Portuguese version prevails in case of inconsistencies.

Voting members for the decision are listed, including Governor Gabriel Muricca Galípolo and eight others.

Brazilian and global corporate earnings in focus, with companies like Eletrobras, Engie Brasil, Minerva, Guararapes, and Petz reporting.