Brazil’s central bank on Wednesday delivered its strongest message yet that it’s poised to pump more stimulus into an ailing economy after lowering its key rate by a half percentage point.
The bank’s board, led by its President Roberto Campos Neto, cut the benchmark Selic to a record low of 6%, as forecast by 18 of 45 economists surveyed by Bloomberg. The others expected a smaller reduction or even no cut at all. While stating that their next move will depend on activity and inflation data, policy makers signaled that forecasts for below-target consumer prices in 2020 leave the door open to more easing.
By Mario Sergio Lima via Bloomberg