Brazil Cuts Key Rate to Record Low, Signaling End of Cycle
- Policy makers cut so-called Selic rate by 25bps to 6.75%
- Decision comes as chances of approving pension reform dwindle
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Brazil’s central bank cut its key interest rate by 25 basis points to a record low as it signaled the end of the most aggressive easing cycle in the last decade amid risks that reforms could falter and push up prices.
All but two of the 40 analysts surveyed by Bloomberg expected the central bank to lower the Selic to 6.75 percent, a 750-basis point cut since October 2016. In the statement accompanying the decision, the bank indicated this cut would mark the end of the easing cycle, pending the development of economic activity and inflation, among other factors.