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Brazil likely to end easing cycle with 50bp rate cut

Record-low rates will suffice to boost growth in 2020; inflation up on weaker real

The Central Bank of Brazil
Photo: Central Bank of Brazil

The Central Bank of Brazil is widely expected to cut rates by 50 basis points today (December 11), potentially marking an end to the easing cycle that started in July.

If the action goes ahead, the monetary policy committee would place the key Selic rate at a new record low of 4.5%. This would be the fourth 50bp rate reduction implemented this year in a bid to boost weak growth. The last one took place on October 30.

Most analysts expect this to be the last easing move of the cycle. They argue

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