Brazil’s central bank raised its key rate by a full percentage point for the third meeting and cued a smaller hike at its next gathering as policymakers weigh resilient inflation and signs of an economic slowdown, Bloomberg News reported. Policymakers led by Gabriel Galipolo lifted the benchmark Selic to 14.25% late on Wednesday, the highest level since October 2016. The central bank has now tightened by 3.75 percentage points over its last five decisions.

Brazil's government on Tuesday unveiled a long-promised plan to exempt individuals earning up to 5,000 reais ($881.27) per month from income tax, with the revenue gap set to be covered by new levies on high earners and profits and dividends sent abroad, Reuters reported. The proposal, initially announced late last year when it triggered a negative market reaction over fiscal concerns, was one of President Luiz Inacio Lula da Silva's key campaign promises, and is now seen as crucial for the president to regain popularity amid declining approval ratings.

A lawyer argued Thursday that global mining giant BHP Group should be held liable for Brazil’s worst environmental disaster 10 years ago when a dam collapse poured tons of toxic mining waste into a major waterway that killed 19 people and devastated villages, the Associated Press reported. High Court Justice Finola O’Farrell said she would rule later in the class action case in which claimants are seeking 36 billion pounds ($47 billion) in damages from Australia-based BHP. The case was filed in Britain because one of BHP’s two main legal entities was based in London at the time.

Brazil's Finance Minister said on Wednesday that the country would not immediately retaliate against tariffs imposed by the United States on steel and aluminum imports, instead seeking talks, with the government noting it will consider all actions, Reuters reported. U.S. President Donald Trump's increased tariffs on all steel and aluminum imports took effect on Wednesday, stepping up a campaign to reorder global trade in favor of the U.S. and drawing swift retaliation from Canada and Europe.

Brazilian coffee traders Atlantica and Cafebras, and its controlling holding company Montesanto Tavares Group, have filed a court request for bankruptcy protection, looking to restructure a total debt of 2.12 billion reais ($368.54 million), Reuters reported. According to a statement dated February 28, the first day of carnival celebrations in Brazil that only ended on Wednesday, the companies said failure by Brazilian coffee farmers to comply with contracts to deliver coffee to them made their financial situation unsustainable.

Brazilian airline Azul expects to go "back to basics" and be able to focus more on its operations this year, Chief Executive John Rodgerson said, after a challenging 2024 marked by some market disruptions and a major debt restructuring, Reuters reported. "I am excited about 2025. It can't be worse than 2024," he told Reuters in an interview as the carrier reported on Monday fourth-quarter core earnings slightly above market expectations, with full-year figures matching its previously released outlook.

Brazilian cosmetics maker Natura &Co is in exclusive talks with asset manager IG4 for the potential sale of Avon's operations outside Latin America, it said on Thursday, sending its shares higher, Reuters reported.

Brazil inflation edged down at the start of the year, as one-time energy credits provided consumers temporary relief from simmering price pressures, Bloomberg News reported. Official data released Tuesday showed consumer prices rose 4.56% from a year earlier, just under the 4.58% median estimate in a Bloomberg survey of economists and down from December’s pace of 4.83%. On the month, they increased 0.16%. The central bank is planning to take the benchmark Selic to 14.25% next month, marking its third-straight full-point hike, to bring down prices.

Brazil analysts revised up 12-month inflation expectations to further above the central bank’s goal, even after policymakers increased the benchmark interest rate by a full percentage point last month and pledged another hike of the same magnitude in March, Bloomberg News reported. Consumer prices are forecast to rise 5.87% in the 12 months, compared with 5.74% in the previous report, according to a weekly survey of economists published on Monday.

Brazil’s central bank said annual inflation will run above the tolerance range for the next six months, as food prices rise significantly and services costs remain elevated despite aggressive interest rate hikes, Bloomberg News reported. There will be a target breach with June 2025 inflation under the new framework, central bankers wrote in the minutes to their Jan. 28-29 policy meeting, when they stuck with prior guidance and lifted the Selic to 13.25%.