Brazil's central bank reduced its benchmark interest rate by 25 basis points for the second consecutive meeting on Wednesday, while keeping future policy adjustments on the table as it assesses the economic impact of the Middle East conflict. The bank's Monetary Policy Committee (Copom) unanimously voted to lower the Selic rate to 14.50%. This move was anticipated by 31 out of 35 economists surveyed by Reuters. Policymakers reiterated the need for serenity and prudence in conducting monetary policy. In their policy statement, they wrote, "Future interest rate adjustments may incorporate new information regarding the depth and duration of the Middle East conflict." Central bank officials indicated that the highly restrictive policy stance has provided them with room to ease policy. The Selic rate had been maintained at a near two-decade high since July of last year. However, policymakers appeared to acknowledge that a prolonged conflict between the U.S. and Iran could potentially shorten the current cycle of monetary easing. Separately, the central bank revised its inflation forecasts on Wednesday, raising the 2027 projection to 3.5% from the 3.3% outlined in the March monetary policy report, and increasing the 2024 inflation expectation to 4.6% from 3.9%.