Economics
Brazil Needs to Cut Rates Fast, Ex-Central Bank Director Says
- Figueiredo bets central bank to cut Selic by 50bps on July 31
- Makes ‘no sense’ to start slow as economy paralyzed, he says
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With Brazil’s economy flagging, the central bank has no time to lose and will ease its key interest rate by a half percentage point this month, according to Luiz Fernando Figueiredo, the bank’s former monetary policy director.
“It makes no sense to start slow, because at the end of the day this economy really needs stimulus,” Figueiredo, now chief executive officer at asset manager Maua Capital, said in an interview. “So they need to cut soon, by 50 basis points.”