Brazil's central bank (Banco Central do Brasil) has lowered its benchmark Selic rate from 14% to 13.75%, marking the fifth consecutive cut in a cycle that began in March 2026 following nearly two years of rate hikes. The reduction comes just two weeks before the October 4 presidential election, in which incumbent President Luiz Inácio Lula da Silva is running neck-and-neck in polls against conservative senator Flavio Bolsonaro, son of jailed former president Jair Bolsonaro. Despite inflation falling within the central bank's target range, its Monetary Policy Committee cautioned that "higher than usual" inflation risks remain, citing rising oil prices linked to regional conflict and global monetary uncertainty, while many Brazilians report that everyday costs — particularly food staples such as potatoes, onions, and tomatoes — continue to feel increasingly burdensome.