On March 18, the Brazilian Central Bank's Monetary Policy Committee (Copom) commenced a new cycle of interest rate cuts, reducing the Selic rate by 0.25 percentage points from 15% to 14.75% per year. This marks the first reduction during Gabriel Galípolo's tenure as the president of the Central Bank. Despite the rising uncertainties due to the ongoing war in Iran, the committee confirmed its earlier intention to begin easing monetary policy, which was initially signaled during their meeting in January.

The committee refrained from indicating the magnitude of future cuts, citing a "strong increase in uncertainty." They emphasized the need for more clarity regarding the intensity and duration of the conflicts in the Middle East before making further decisions on interest rate adjustments. The vote was unanimous among seven of the nine members, reflecting a consensus on the necessity to adapt monetary conditions while navigating through the evolving geopolitical and economic landscape.

Currently, the Central Bank has not announced replacements for directors Diogo Guillen and Renato Gomes, whose terms expired at the end of December 2025. Their absence leaves a gap in the decision-making capacity of the committee, which may affect the formulation of future policies, especially in a period characterized by significant global and domestic economic challenges.