Brazil: Slower Pace Of Cutting Ahead, As BCB Begins To Doubt Disinflationary Trends
Banking & Financial Services / Brazil / Thu 09 May, 2024
Key View
- We now expect that the Banco Central do Brasil (BCB) will cut its policy rate from 10.50% to 9.50% by year-end (9.25% previously), with economic resilience and uncertainty surrounding the government’s fiscal policy stance set to see the central bank adopt a slightly less hawkish stance.
- The BCB lowered its policy rate by 25bps at its May 8