Brazil Central Bank Leaves Selic Rate at 2%, Signals Possible Change to Forward Guidance

SAO PAULO—Brazil’s central bank left its benchmark interest rate unchanged Wednesday but signaled it is starting to consider raising the rate from its current record low.

The bank’s monetary policy committee left its Selic rate at 2% for the third meeting in a row. The bank said its forward guidance for keeping rates low may no longer apply soon because expectations for inflation are getting worse. The bank added, though, that a rate increase might not be automatic even if price increases accelerate.

“Economic…