Brazil makes first rate cut in cycle
Board divides 5–4 over size of reduction, with majority backing larger 50bp option
After a pause of nearly a year and months of political pressure, the Central Bank of Brazil (BCB) cut its Selic policy rate by 50 basis points on August 2. The cut brings the rate to 13.25%.
The size of the cut surprised market observers and split the central bank’s board, which also serves as its monetary policy committee. Many experts had expected a 25bp cut, but five board members backed the 50bp option, versus four in favour of 25bp.
Between March 2021, when it began increasing rates, and
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- Central banks prepare for the rise of AI
- Central bank of the year: Central Bank of Brazil
- Bundesbank’s Nagel: central bank business models are changing