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Brazil central bank flags uncertainty over US tariffs, significant sectoral impacts

ReutersAug 5, 2025 11:15 AM

- Brazil's central bank said on Tuesday that steeper U.S. tariffs on goods from the country could have "significant" sectoral impacts, while broader macroeconomic effects remain uncertain and will depend on how negotiations evolve and risk perceptions.

In the minutes from its latest policy meeting, the bank also reaffirmed its commitment to a monetary policy stance aimed at anchoring inflation expectations to the official target.

Policymakers last week paused an aggressive tightening cycle, holding the benchmark Selic rate at a nearly 20-year high of 15%.

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