FX.co ★ Ibovespa Dips Ahead of Selic Decision

The Ibovespa fell 2% to close at 184,750 points ahead of the upcoming Selic decision. The Brazilian central bank is widely expected to cut the benchmark Selic rate by 25 basis points after the close, but recent upside surprises in inflation have kept some bets on an unchanged rate alive and increased the odds of more hawkish forward guidance. Meanwhile, the US Federal Reserve kept its key interest rate in a range of 3.5% to 3.75%, citing the jump in oil prices and heightened economic uncertainty stemming from the war in Iran. Large banks finished in the red, with Itaú dropping 2.8% and Bradesco losing 2.3%. Santander slipped 2.4% after missing its Q1 2026 earnings estimates. In addition, Vale sank more than 5.9% after posting results below market expectations, while WEG declined nearly 6.7% following a drop in profits.