Further Interest Rate Cuts In Brazil In March, But Pace Of Loosening Set To Slow
Country Risk / Brazil / Thu 21 Mar, 2024
Key View
- In line with our own and consensus expectation, the Banco Central do Brasil (BCB) cut its policy rate by a further 50 basis points (bp) to 10.75% at its March 20 meeting.
- A further 50bp cut is likely in May, but we see some potential for the BCB to signal a slowdown in the pace of cuts from June onward, given emerging evidence of