Brazil cuts interest rates by 50 basis points

Brazil’s central bank cut its benchmark Selic interest rate by another 50 basis points as expected. Brazil’s central bank cut its benchmark interest rate by 50 basis points for the second consecutive time, signaling that monetary easing will continue at the same pace at least through the end of the year. The bank lowered the Selic index to 12.75% late on Wednesday, as expected by 40 analysts in a Bloomberg survey. The decision was in line with the bank’s previous guidance, which policymakers kept unchanged. “The committee emphasizes that the overall size of the easing cycle over time will depend on inflation dynamics, especially components that are more sensitive to monetary policy and economic activity, inflation expectations, especially long-term ones, inflation projections, the output gap and the balance of risks,” the statement said.