Brazil’s central bank delivered the widely anticipated 25-basis-point Selic cut to 14.25% at its June 17 Copom meeting, extending the gradual easing cycle that began in March amid inflation at 4.72% in May—above the 3% target but stable enough for measured policy adjustment. Resilient domestic activity, a tight labor market, and 1.1% first-quarter GDP growth supported the move, while elevated 2026 inflation expectations near 5% and external uncertainties from energy prices kept the pace cautious. Market-implied odds heavily favored the reduction given consistent economist surveys and prior guidance. A sharper inflation spike from geopolitical supply shocks or unexpectedly robust demand could still prompt a pause in future meetings.