The Ibovespa fell 0.4% to close at 175,063 on Thursday, pressured by expectations of higher interest rates. Brazil’s IGP-M rose 0.84% in May, slightly above forecasts, while Citi raised its year-end Selic rate projection to 13.75% from 13.25%. Meanwhile, the unemployment rate fell to 5.8% in the rolling quarter through April, below market expectations and the lowest reading for the period on record. Rate-sensitive stocks weighed on the index, with Itau down 0.8% and Bradesco losing 0.6%. Petrobras also declined 0.7% on expectations of normalization of the oil flow in the Strait of Hormuz amid reports that the US and Iran agreed on a proposal to extend their ceasefire, pending approval from the US president.