FX.co ★ Ibovespa Edges Higher After BCB Monetary Policy Decision

The Ibovespa inched higher on Thursday, hovering near 168,000 points, after the BCB kept the Selic rate unchanged at 13.75%, interrupting its monetary easing cycle. The decision came against a challenging backdrop of weaker growth, higher inflation, and increased uncertainty following President Lula’s reelection. Market expectations were split: part of the market anticipated a pause, while others had priced in a sixth consecutive 25 bps rate cut.

In its statement, the central bank cited higher inflation expectations, elevated uncertainty, and a “more pronounced deceleration” in economic activity as key reasons for its decision. Credit-sensitive stocks delivered a mixed performance. Among major banks, Itaú and Bradesco posted modest gains, while Banco do Brasil slipped more than 0.5%. Utilities largely moved lower, with Axia dropping over 1%.

In the commodities space, Petrobras recovered nearly 2%, tracking higher oil prices after tumbling more than 7% on Wednesday amid a sharp decline in the commodity. Vale advanced close to 1%, supported by rising iron ore prices.