The Ibovespa edged 0.2% higher to close at 185,992 on Thursday after a volatile session following the BCB’s decision to cut the Selic rate by 25 bps to 13.75%. The Copom did not signal its next steps but left the door open for another cut at the next meeting. The message was one of continuity, with monetary policy remaining cautious, data-dependent, and focused on composure. Still, the index fell as much as 1.2% during the session amid concerns over government spending and electoral effects after the federal government announced a 15% increase in welfare benefits. Polls showing challenger Flavio Bolsonaro numerically ahead in second-round scenarios continued to support the index. A halt in the oil rally and the consequent softening of global yields also helped support the market. Major banks were mixed, with Banco do Brasil rising 0.3% and Santander advancing 2.5%, while Itau inched lower and Bradesco fell 0.3%. Vale rose 2.1%, helped by higher iron ore prices.