Itau Asset’s Serra Sees Bulk of Brazil Rate Cuts After Elections

The bulk of interest-rate cuts in Brazil is likely to come only after October elections, according to former Central Bank director Bruno Serra.

Serra, now a portfolio manager at Itaú Asset, said the oil shock is likely to lead policymakers to adopt a “slower” easing cycle at the start. The central bank, which has lowered the Selic benchmark by just 50 basis points since kicking off the cuts in March, should take borrowing costs to 11% by mid-2027, he added.