Brazil central bank could ‘test’ lower rates if inflation remains weak – IMF
IMF staff see “no constraint” to lower rates as long as forward guidance is deployed
There is room for the Central Bank of Brazil to cut interest rates further if inflation and inflation expectations remain below target, according to a new report from the International Monetary Fund.
Since the start of the year, the central bank has cut the policy rate 225 basis points to 2% in response to the Covid-19 pandemic.
But staff from the IMF believe the central bank has been “cautious”, and should inflation remain low, and inflation expectations anchored, interest rates may need to
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