Brazil Signals Further Interest Rate Cuts as Inflation Slows

Brazil’s central bank reiterated that inflation will continue to slow toward its target, signaling it will further reduce interest rates that have already been cut to a record. Swap rates fell.

In the minutes to its July 10-11 meeting published today, the bank said future monetary easing would be carried out with “parsimony,” repeating language it used ahead of its two previous meetings to signal half-point rate cuts. The bank’s board voted unanimously last week to cut the Selic for an eighth straight time to 8 percent.