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Brazil ends easing cycle following Lula’s election win

Resistance to addressing imbalances could risk ‘perennial debate’ on fiscal dominance, says economist

Close up of the flag of Brazil

The Central Bank of Brazil (BCB) has held its benchmark interest rate, thereby ending a run of five consecutive rate cuts amid a deteriorating inflation outlook.

In a unanimous decision on November 4, the BCB’s monetary policy committee, known as Copom, voted to keep rates at 13.75%. The pause had been predicted by 26 of 31 economists surveyed by Bloomberg, while five had forecast a 25 basis point cut.

In a statement, the central bank said the decision was consistent with bringing inflation to a

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