The Central Bank of Brazil's Monetary Policy Committee (Copom) has paused its cycle of interest rate increases, maintaining the benchmark Selic rate at 15% per annum, the highest level in nearly 20 years. This decision follows seven consecutive rate hikes since September 2024, when the Selic rate rose from 10.5% to 15%, a cumulative increase of 450 basis points. The latest increase of 0.25 percentage points to 15% was driven by the resilience of the Brazilian economy and persistent inflationary pressures. The Copom's minutes highlight concerns over fiscal policy and indicate that the Selic rate will need to remain elevated for an extended period to contain inflation. The pause allows the central bank to assess the effects of the monetary tightening amid ongoing economic uncertainties, including inflation remaining above target and risks from potential tariffs. The decision was unanimous and reflects a cautious approach in light of recent political and economic developments, including delayed tariff implementation by former U.S. President Donald Trump.