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Brazil's Economy Grows 0.4% Amid Tight Monetary Policy

10/17/2025

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Summary

Story summary

Brazil's economic activity rose 0.4% in August, below the 0.6% increase economists expected based on central bank data.
Economists expect a sharper slowdown due to tight monetary policy, with the benchmark Selic rate held at 15%, the highest in nearly two decades.
Brazilian officials acknowledge the cooling economy but say stability is needed to reach a 3% inflation target.
Paulo Picchetti, a director at the Central Bank, dismissed recession concerns.
The IBC-BR index shows the farm sector contracted 1.9% from July, while the overall index rose 3.2% year over year.

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Story summary

Brazil's economic activity rose 0.4% in August, below the 0.6% increase economists expected based on central bank data.
Economists expect a sharper slowdown due to tight monetary policy, with the benchmark Selic rate held at 15%, the highest in nearly two decades.
Brazilian officials acknowledge the cooling economy but say stability is needed to reach a 3% inflation target.
Paulo Picchetti, a director at the Central Bank, dismissed recession concerns.
The IBC-BR index shows the farm sector contracted 1.9% from July, while the overall index rose 3.2% year over year.