Above-Goal Inflation Crushes Brazil Hopes for Bigger Rate Cuts
- Central bank vows to deliver additional 50-point cuts to Selic
- Mid-month inflation accelerates, services costs halt easing
The central bank headquarters in Brasilia, Brazil.
Photographer: Arthur Menescal/BloombergThis article is for subscribers only.
Brazil’s central bank poured cold water on expectations of bigger interest rate cuts, emphasizing risks to the monetary easing cycle it kicked off last month, including above-target inflation expectations that policymakers vowed to bring down.
Swap rates rose across the board as the minutes of the bank’s latest monetary policy meeting, released early on Tuesday, led investors to trim expectations of a more aggressive easing cycle next year.