Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 38

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 38
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01-02 Persistent high inflation can affect our revenues and our ability to access foreign financial markets.
 Brazil has, in the past, experienced extremely high rates of inflation. Inflation and governmental measures to combat inflation have had significant negative effects on the Brazilian economy and have contributed to increased economic uncertainty and increased volatility in the Brazilian securities markets, which may have an adverse effect on us.
 Current economic policy in Brazil is premised on a monetary regime under the supervision of the Central Bank of Brazil to ensure that the effective rate of inflation stays in line with a predetermined and previously announced target. However, inflation rates exceeded the target range in 2024, reaching 4.83% compared to the target of 3.00% and a tolerance range of about 1.50%. Inflation rates were also above the target range in 2023 and 2022, reaching 4.62% in 2023 compared to the target of 3.25% and 5.79% in 2022 compared to the target of 3.50%, as measured by the Extended National Consumer Price Index (“IPCA”).

10 – Form 20-F 2024 | Bradesco
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Inflation and government measures to combat inflation may continue to have significant negative effects on the Brazilian economy, including greater volatility in the Brazilian securities market. Moreover, measures to control inflation often led to maintaining a restrictive monetary policy, with high interest rates, thereby restricting credit availability and limiting economic growth. On the other hand, the absence of a credible and responsible monetary policy may trigger increases in the rate of inflation and thus negatively affect economic stability. In the event of an increase in inflation, we may not be able to adjust the prices we charge our clients to offset the effects of inflation on our cost structure, which may adversely affect us and our operating results.
 Inflation decompression throughout 2023 led the Central Bank of Brazil to gradually start reducing the SELIC rate. On May 8, 2024, the SELIC rate was reduced to 10.50%. However, the resilience of economic activity, the tight labor market and rising inflation expectations led the Central Bank of Brazil to start a new monetary tightening cycle on September 18, 2024. As of December 31, 2024, the SELIC rate was 12.25% and it was subsequently increased to 14.25% on March 19, 2025, where it remains as of the date of this annual report.
 The effects of persistent high