Brazil's central bank cut its benchmark rate to 14.50% at its April 29 meeting, in line with forecasts. The monetary policy council cited an uncertain external environment due to geopolitical conflicts in the Middle East, which are affecting global financial conditions. National indicators continue to show a moderating economic growth trajectory, while the labor market remains resilient. Headline and underlying inflation have accelerated, moving further away from the target. Inflation expectations for 2026 and 2027 remain above target, at 4.9% and 4.0% respectively. Inflation risks are higher than usual and projections show further divergence from the target within the policy horizon. However, as uncertainty regarding these projections has increased considerably amid lack of clarity on the duration of the US-Iran conflict and it's effects, the committee deemed it appropriate to continue the monetary policy calibration cycle.