KONTAN.CO.ID - SAO PAULO. Brazil's central bank kicked off its rate-cutting cycle more aggressively than expected on Wednesday, reducing its benchmark interest rate by 50 basis points and signaling more of the same in the months ahead due to an improving inflation outlook. The bank's rate-setting committee Copom cut its Selic policy rate by 50 basis points to 13.25%, as just 10 of 46 economists surveyed by Reuters had anticipated. The other 36 respondents expected a more conservative reduction of 25 basis points. Although Wednesday's policy decision was closely divided, Copom's policy statement signaled a shared outlook to maintain the pace of rate cuts in coming months.
Brazil Central Bank Kicks Off Rate Cuts More Aggressively than Expected
KONTAN.CO.ID - SAO PAULO. Brazil's central bank kicked off its rate-cutting cycle more aggressively than expected on Wednesday, reducing its benchmark interest rate by 50 basis points and signaling more of the same in the months ahead due to an improving inflation outlook. The bank's rate-setting committee Copom cut its Selic policy rate by 50 basis points to 13.25%, as just 10 of 46 economists surveyed by Reuters had anticipated. The other 36 respondents expected a more conservative reduction of 25 basis points. Although Wednesday's policy decision was closely divided, Copom's policy statement signaled a shared outlook to maintain the pace of rate cuts in coming months.