The monetary easing cycle has not yet ended

BRAZIL ECONOMICS - Report 26 Mar 2018 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

The Central Bank decided to cut the interest rate by 25 basis points at the last COPOM meeting, to 6.5%, and made it clear that if the conjuncture continues to evolve as it has recently – low inflation and weak economic recovery – another reduction can be expected at the next meeting. Although this announcement surprised some segments of the financial market, whose forecast was that the easing cycle would end with the SELIC rate at 6.5% a year, our interpretation is that the change in stance is fully justified, both by the slow closing of the output gap and the projections for inflation below the target in 2018 and 2019.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.