On 18 March 2025, in Sao Paulo - Central Zone (Sao Paulo), demonstrators protested against the increase in the SELIC rate in front of the Central Bank building in the Centro district. The action called the National Day of Mobilization Less Interest, More Jobs was attended by the CTB, FS, CUT, CSB, UGT, Intersindical, NCST and students from UMES (Uniao Municipal dos Estudantes Secundaristas de Sao Paulo). The act was part of other demonstrations that took place across the country.

Supply-chain Risk Briefing

1. Summary

On March 18, 2025, peaceful protests opposing the central bank's SELIC base rate hike occurred in São Paulo, Brazil. The demonstrations were part of a nationwide mobilization involving major labor unions and student groups, with the current risk level assessed as low.

2. Supply-chain impact

• Brazil manufacturing sector: Anti-rate hike protests reflect concerns over increased funding costs for manufacturers and reduced production investment, potentially indirectly affecting future industrial productivity
• São Paulo state logistics hub: São Paulo serves as Brazil's largest economic center and key hub for port-inland logistics networks, though peaceful protests currently pose no direct disruption to logistics operations
• Agricultural export sector: Producers of Brazil's major exports including soybeans, corn, and sugar may face operational funding pressures from high interest rates, creating potential medium to long-term supply volume fluctuations
• Energy infrastructure: Brazilian oil and gas development projects may face investment delays due to rising interest rates, constraining energy supply chain expansion

3. Watch points

• SELIC rate policy changes: Future monetary policy decisions by Brazil's central bank and subsequent reactions from labor and industry sectors
• Nationwide protest expansion: Scale and intensity of follow-up demonstrations in other major cities, particularly protest movements in logistics hub areas including ports and airports