Pace of monetary easing may slow, says Central Bank of Brazil
Committee unanimously cut interest rates to 10.25%, but political uncertainty could slow the future pace of easing
Brazil’s monetary policy committee (Copom) has hinted future monetary easing could be on a smaller scale given rising uncertainty.
In a unanimous decision, the central bank cut interest rates by 100 basis points to 10.25% on May 31, it announced in a statement, in line with market consensus.
At the same time, Copom’s forward guidance turned somewhat more hawkish. Given the balance of risks, a “moderate reduction in the pace of monetary easing compared to this meeting’s cut will likely prove
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