A Fifth Bank of Brazil Rate Cut Since July

February 5, 2020

Brazil’s Selic Rate has been reduced to 4.25% from 4.5%, but a released statement calls for a pause in the easing that totals 225 basis points since mid-2019.

The Copom judges that the current stage of the business cycle recommends caution in the conduct of monetary policy. In light of the lagged effects of the monetary easing cycle that began in July 2019, the Committee deems appropriate to interrupt the monetary easing process. The Committee emphasizes that its next steps will continue to depend on the evolution of economic activity, the balance of risks, and inflation projections and expectations, with increasing weight for 2021.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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