Economics
Brazil Eyes ‘Unusually Large’ Stimulus After Bold Rate Cut
- Central bank cut key rate by 75 basis points to record low 3%
- Policy makers recognize potential limits to monetary easing
Pedestrians walk through the Paraisopolis favela of Sao Paulo, Brazil, on April, 23.
Photographer: Rodrigo Capote/BloombergThis article is for subscribers only.
Brazil’s central bank signaled it will spare no effort in helping Latin America’s largest economy ride out a historic blow from the coronavirus pandemic following Wednesday’s larger-than-expected interest rate cut.
The bank’s board, led by its President Roberto Campos Neto, cut the Selic by three-quarters of a point to a record low 3% in a move that was forecast by eight of 37 analysts in a Bloomberg survey and was bigger than estimates from the remaining 29. In an accompanying statement, policy makers wrote the dire growth outlook requires an “unusually large monetary stimulus.“