The Ibovespa hovered around the flatline near 186,000 points on Thursday after the release of the Brazilian Central Bank’s (BCB) monetary policy report. The BCB noted that the recent oil price shock has not yet produced significant indirect inflationary pass-through in the Brazilian economy, although it has had a direct impact on prices. The central bank also revised its 2026 GDP growth forecast down to 1.8%, from 2.0% projected in June.
On the fiscal front, the federal government decided to reduce the spending freeze in the 2026 budget by R$1.9 billion, lowering the total amount blocked to R$16.1 billion amid ongoing concerns about elevated public expenditures.
In equities, financials retreated, with Bradesco and Banco do Brasil each losing about 0.5%, while B3 fell nearly 1%. Utilities also weakened, with Axia slipping 0.5%. Other notable decliners included WEG, down 2%, and Embraer, off 1%.
In contrast, Petrobras gained more than 0.5% as oil prices advanced on heightened tensions in the Middle East. Vale also edged up nearly 0.5%, supported by concerns over iron ore supply in Brazil.