SAO PAULO, Sept 18, 2025 (BSS/AFP) - Brazil's central bank held its benchmark interest rate steady at 15 percent on Wednesday, as inflation remains high amid global uncertainty over US economic policy.

The bank has kept the interest rate at 15 percent -- one of the highest levels in the world -- since July, ending a streak of seven straight hikes.

The bank's monetary committee cited the "uncertain" global environment due to "the economic policy and economic outlook in the United States" -- calling for caution from emerging market economies.

It said the decision was in line with the strategy of bringing inflation back to target.

Inflation is estimated at 4.8 percent for 2025 and 4.3 percent for 2026 -- above the target which is three percent with a tolerance of 1.5 percentage points.

The monetary committee said it "continues to monitor the announcements on tariffs by the USA to Brazil...reinforcing its cautious stance in a scenario of heightened uncertainty."

US President Donald Trump's administration slapped Brazilian imports with 50 percent tariffs that came into effect in August.

The measures against Brazil have been framed in openly political terms -- as punishment for the trial of Trump ally, former president Jair Bolsonaro, who was convicted last week over a botched coup attempt.