Brazil Central Bank Set to Hold Rates, Possibly for Last Time Before Easing

Brazil’s central bank is expected to keep borrowing costs at their highest level in nearly two decades in its first monetary policy decision of the year, while stopping short of fully endorsing a rate cut at its following meeting as inflation runs above target.

Board members led by Gabriel Galipolo will hold the benchmark Selic at 15% for the fifth straight time on Wednesday, according to nearly all economists in a Bloomberg survey, except two who see a quarter-point cut. While most analysts and traders are betting that easing will start in March, there is a risk that this week’s guidance leaves markets underwhelmed.