Brazil split decision not a problem for central bank credibility
Central bank voted 5–4 for larger-than-expected cut
Despite a split decision about the size of its first rate cut of a loosening cycle, experts say the Central Bank of Brazil (BCB) has preserved its public credibility.
The central bank’s board voted 5–4 to lower the headline Selic rate by 50 basis points, to 13.25%, at its monetary policy meeting on August 2. The minority faction had favoured a 25bp cut.
Gabriel Galípolo and Ailton de Aquino Santos, two board members recently appointed by Brazilian president Luis Inácio Lula da Silva, voted for
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