Brazil’s c-bank cuts policy rate to new record low
Brazil’s central bank (BCB) cut its benchmark interest rate by 50 basis points (bps) to a new record low of 5.50%, CEEMarketWatch reported. BCB’s Monetary Policy Committee’s (Copom) decision was taken unanimously and it is in line with the consensus expectation.
The monetary authority considers that the reforms in the Brazilian economy has been advancing and added that benign scenario for inflation could lead to additional adjustments of the degree of stimulus.
On the other hand, the Copom warned that there are still some risks for the local economy such as the negative impact of any frustration of expectations regarding the implementation of crucial reforms.
Regarding inflation, the BCB projected that it will be only 3.5% in 2019 (below the 4.25% target) and 3.8% in 2020 (below the 4% target). The bank also said that country’s economic recovery will be gradual and will continue to depend on the approval of needed reforms and adjustments.Original source: CEEMarketWatch