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1. COPOM cuts Selic rate to 14.25% per year

The Central Bank’s Monetary Policy Committee (COPOM) reduced the Selic rate from 14.50% to 14.25% per year, in a unanimous decision that marked the third consecutive cut in the benchmark interest rate. The move had been widely expected by the market and comes amid lower pressure on international oil prices, following signs of easing tensions in the Middle East, as well as a recent slowdown in inflation in Brazil.

Despite the cut, the Central Bank highlighted that the external environment remains surrounded by uncertainties and that domestic economic activity continues to run hot, with a resilient labor market and inflation still above target. The institution reinforced that it will continue calibrating monetary policy according to the evolution of economic indicators, seeking to balance inflation control with the support of economic activity.

G1: Copom reduz a taxa básica de juros da economia, a Selic, de 14,50% para 14,25% ao ano

2. Federal government removes urgency status from 6×1 work schedule bill

The federal government has withdrawn the urgency status from the bill that proposes ending the 6×1 work schedule, a move that unlocks the agenda of the Chamber of Deputies and allows the voting of other proposals considered priorities. Until then, the fast-tracked processing of the bill had been preventing the advancement of various matters on the House floor.

According to the Executive branch, the decision aims to make room for projects such as updating the MEI revenue cap, regulating artificial intelligence, and criminalizing misogyny. Despite the change in the legislative process, the government stated that it continues to support ending the 6×1 work schedule without reducing wages, and that the proposal will proceed through the next stages of legislative discussion.

Agência Brasil: Câmara: governo retira urgência do fim da escala 6×1 e destrava pauta

3. US and Iran agree to a provisional ceasefire

The United States and Iran have signed a provisional ceasefire agreement aimed at halting the conflict and creating room for negotiations toward a permanent solution to the war over the next 60 days. The understanding includes measures such as maintaining the truce, resuming maritime traffic through the Strait of Hormuz, easing certain economic restrictions, and commitments related to Iran’s nuclear program, helping to reduce regional tensions and put downward pressure on oil prices.

Despite the diplomatic progress, the situation remains uncertain. The US government stated that it may resume military action if it determines that the terms of the agreement are not being met, while Iranian authorities emphasized the benefits achieved through the negotiations. The agreement has also drawn attention from international leaders, who see the truce as an opportunity to reduce instability in the Middle East and prevent further impacts on the global economy.

Forbes: EUA e Irã Assinam Acordo de Cessar-fogo, Mas Trump Diz Que Pode Retomar Ataques

4. Government considers ending fuel subsidies

OThe federal government is considering ending subsidies granted to fuels such as diesel and gasoline if the price of a barrel of oil stabilizes around US$80, following the easing of tensions in the Middle East. According to members of the economic team, the expectation is to monitor market behavior over the coming weeks before deciding on the gradual withdrawal of the emergency measures adopted to contain the impacts of rising international oil prices.

In addition to reducing the need for fuel support, a more stable price environment could ease inflationary pressures and create room for a less restrictive monetary policy. The economic team also assesses that falling oil prices and the appreciation of the Brazilian real help mitigate costs across the economy, while continuing to monitor the effects of stimulus measures and the challenges related to fiscal balance.

Folha de S.Paulo: Governo vai encerrar subsídios a combustíveis se petróleo ficar estável em US$ 80, diz secretário

5. Brazil remains in last place in tax return efficiency

For the 15th consecutive year, Brazil remained in last place in the Social Well-Being Return Index (IRBES), a survey that evaluates the relationship between the tax burden and the quality of life provided to the population. Despite collecting taxes equivalent to 32.32% of GDP in 2024, a level similar to that of developed economies, the country posted the worst performance among the 30 nations analyzed due to low returns in human development indicators.

According to the study, the combination of high taxation and limited well-being outcomes highlights challenges in the efficiency of public resource allocation. While countries such as Ireland, Switzerland, and South Korea lead the ranking, the report suggests that more effective and transparent management of tax revenues could help improve the quality of public services and raise the population’s level of development.

CNN Brasil: Brasil tem pior retorno à população entre países com maior carga tributária