REGRESA

1. Copom reduces Selic rate to 14.50% in a cautious decision

The Central Bank’s Monetary Policy Committee (Copom) reduced the Selic rate by 0.25 percentage points, setting it at 14.50% per year. The decision, which marks the second consecutive cut, was widely expected by the financial market and seeks to balance inflation control with the need to stimulate the economy.

In a statement, Copom said the decision is in line with the strategy of inflation convergence to the target for 2027. The committee maintained a cautious tone, indicating that the global scenario, especially the conflict in the Middle East, requires serenity in future interest rate decisions. Despite the cut, Brazil continues to have one of the highest real interest rates in the world.

Exame: BC corta a Selic pela 2ª vez e taxa de juros no Brasil cai para 14,50%

2. Food prices push inflation higher as April preview shows acceleration

The preview of Brazil’s official inflation, measured by the IPCA-15, rose by 0.89% in April, marking an acceleration compared to the previous month. Although the result came in below market expectations of 1%, it is still a cause for concern, as inflation over the past 12 months reached 4.37%, exceeding the target.

The increase was mainly driven by the Food and Beverages group, with notable price hikes in items such as carrots, onions, milk, and tomatoes. In addition, inflation has become more widespread, with price increases observed in 67% of the surveyed items, including Transportation and Clothing, indicating a broader impact and keeping the Central Bank on alert.

Valor Econômico: IPCA-15 sobe aquém do previsto, mas preocupa
 

3. Government relaunches “Desenrola” program with new rules to expand reach

President Lula is pushing for more effective results in the second phase of the “Desenrola” program, after the first version failed to achieve the expected impact. The new stage, dubbed “Desenrola 2” – or “Turbocharged Desenrola” – aims to broaden the program’s reach and focus on renegotiating debts for low-income workers.

Among the new guidelines, the program will allow the use of FGTS funds to settle debts, with an interest rate cap of 1.99% per month for new financing and a repayment term of up to four years. The government expects that, with the use of the Credit Guarantee Fund (FGO), banks will be encouraged to offer larger discounts, potentially mobilizing up to R$140 billion in debt.

Folha de S.Paulo: Lula cobra da equipe resultados para o Desenrola 2

4. End of the 6×1 work schedule advances in Congress with no compensation planned for companies

The proposed constitutional amendment (PEC) that aims to end the 6×1 work schedule is facing resistance in Congress regarding compensation for businesses. The president of the special committee, Congressman Alencar Santana (PT-SP), and the rapporteur, Leo Prates (Republicanos-BA), oppose any form of financial or tax benefits for sectors that would be impacted by the change.

The goal is to bring the bill to a vote in the Chamber of Deputies by May 28. While the rapporteur seeks to build an agreement that satisfies workers and minimizes losses for the productive sector, possibly through a transition rule, the committee president categorically ruled out any form of compensation for companies.

Folha de S.Paulo: Presidente da comissão da 6×1 também quer projeto de Lula

5. Banco Master collapse creates multibillion-dollar hole and drains FGC reserves

The collapse of the Master financial conglomerate had a significant impact on the Credit Guarantee Fund (FGC), reducing its reserves by R$17.1 billion. The institution had to set aside around R$51.8 billion to cover guarantees for affected creditors, of which R$49 billion has already been paid, equivalent to nearly 95% of the total.

The total cost of the Master group’s downfall to the FGC is estimated at R$57.4 billion. To ensure liquidity and maintain financial system stability, the fund approved the advance payment of 60 months’ worth of contributions from member institutions, a measure aimed at rebuilding its reserves and continuing to protect investors and depositors.

O Estado de S.Paulo: FGC ainda tem R$ 2,9 bi a pagar da quebra do Master e custo total ao fundo chegará a R$ 57,4 bilhões
Folha de S.Paulo: Patrimônio líquido do FGC caiu 12,25% em 2025, após Master