Lower inflation could prompt Brazil cbank to step up interest cuts

As the economy recovers and inflation forecasts go down, the Central

Published on 30/03/2017 - 12:14 By Kelly Oliveira reports from Agência Brasil - Brasília

Vitória (ES) - Ônibus, comércio e escolas voltam a funcionar na Grande Vitória (Tânia Rêgo/Agência Brasil)

As the economy recovers and inflation forecasts go down, the Central Bank has suggested it could make larger cuts going forward, which could boost trade and service salesTânia Rêgo/Agência Brasil

Amid generally lower inflation rates, the Central Bank may step up cuts in Brazil's benchmark interest rate (known as SELIC), it says in its Inflation Report released Thursday (March 30).

In February, the Monetary Policy Committee (the Central Bank body that analyzes Brazil's economic scenario) announced its unanimous resolution for a fourth straight interest cut—slashing the SELIC by 0.75 percentage points from 13% per annum to 12.25% p.a. This has been the second consecutive 0.75pp cut. The Committee's next meeting has been slated for April 11 and 12.

As the economy recovers and inflation forecasts go down, the Central Bank has suggested it may make larger cuts going forward, which could boost trade and service sales.


Translated by Mayra Borges


Fonte: Lower inflation could prompt Brazil cbank to step up interest cuts

Edition: José Romildo

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