The Brazilian Institute of Geography and Statistics (IBGE) reported on June 12 that inflation measured by the IPCA rose 0.58% in May compared with the previous month, with the 12-month accumulated rate reaching 4.72%, above the 4.5% ceiling set by the Central Bank. Currently, the Selic benchmark rate stands at 14.5%, and there are two schools of thought ahead of the monetary policy committee meeting on June 17: one advocates a 25-basis-point cut to 14.25%, while the other suggests keeping rates high to contain inflation expectations. The outcome will directly determine future financing costs, impacting the business decisions of Chinese companies operating in Brazil.