Another Brazilian Central Bank Interest Rate Cut

July 26, 2017

The Selic rate has been reduced to 9.25% from 10.25%. The previous cut was made at the end of May and also 100 basis points in size. The current easing cycle began three years ago in July 2014 at 17.5%. A statement released by Copom, the Central Bank of Brazil’s policymaking committee, observes continuing disinflation and better growth data despite conceding that policy and political uncertainty have increased. Future removal of monetary policy restraint is contingent upon economic trends conforming to the expectations of policymakers, and if that happens, they expect the Selic rate to fall to 8% by the end of this year and stabilize thereafter.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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