Economics
Brazil Nods to More Easing Amid Double-Digit Tumble in Activity
- Policy makers signal any future rate cut would be small
- Activity index for April, seen as GDP proxy, falls 15.09% y/y
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Brazilian policy makers left the door open to more monetary easing amid growing doubts that Latin America’s largest economy would quickly recover from the devastation caused by the coronavirus pandemic.
The central bank’s board, led by its President Roberto Campos Neto, on Wednesday cut the benchmark Selic rate by 75 basis points to 2.25% in the eighth straight reduction. The following morning, the bank said its economic activity index for April, seen as a proxy for gross domestic product, tumbled 15.09% from the previous year.