Favourable inflation prompts 100bp cut in Brazilian interest rate
Central bank continues easing cycle as political uncertainty not feeding through to inflation
Uncertainty regarding the political environment and future fiscal reforms has had no effect on Brazil’s inflation rate so far, prompting the country’s central bank to cut the policy interest rate by a further 100 basis points.
In a unanimous decision, the Central Bank of Brazil’s monetary policy committee (Copom) reduced interest rates to 9.25%, with the potential for another large cut in September.
“The recent increase in uncertainty regarding the evolution of reforms and adjustments in the
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