Brazil to Keep Pace of Interest Rate Cuts Amid Global Tensions
- All economists in survey see half-point rate cut to 12.25%
- Investors will be looking at easing pace, fiscal comments
Roberto Campos Neto
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
Brazil’s central bank will likely deliver its third half-point interest rate cut as bets on slowing inflation coupled with concerns over fiscal policy and the global economy support gradual easing.
All 36 analysts surveyed by Bloomberg see the benchmark Selic falling to 12.25% on Wednesday. Less than 1% of digital options traders at the local stock market expect a bigger reduction of 75 basis points, with a majority also calling for another half-point cut at December’s rate decision.