Brazil Central Bank Seen Cutting Rates Further in 2024

Following a continuation of lower yields and global inflation estimates Bloomberg reported Brazil analysts lowered their 2024 benchmark interest rate projections further. According to a weekly central bank economist survey published Tuesday the Selic will fall to 9% by December 2024, down from the prior estimate of 9.25%. Borrowing costs will fall to 8.5% by the end of 2025, the release showed. Banco Central do Brasil​ cut the Selic rate 50bps to 11.75% at its December meeting. It was the … Continue reading “Brazil Central Bank Seen Cutting Rates Further in 2024”

Aggressive Brazil Central Bank Cut Rates 50bps Fourth Time in a Row to 11.75%

Banco Central do Brasil​ cut the Selic rate 50bps to 11.75% at its December meeting in line with market expectations. It was the fourth half a percentage point cut in a row and signaled it will keep the same pace of monetary easing at least through 2024. Policymakers led by Roberto Campos Neto have now reduced borrowing costs by 2 percentage points since August. Brazil’s central bank repeated forward guidance that says, “If the scenario evolves as expected, the Committee … Continue reading “Aggressive Brazil Central Bank Cut Rates 50bps Fourth Time in a Row to 11.75%”

Brazil Central Bank Deliver Third 50bps Rate Cut in a Row to 12.25%

Banco Central do Brasil​ cut the Selic rate 50bps to 12.25% at its November meeting in line with market expectations. It was the third half a percentage point cut in a row and signaled it will keep the same pace of monetary easing at least through year’s end. Brazil’s central bank repeated forward guidance that says “If the scenario evolves as expected, the Committee members unanimously anticipate further reductions of the same magnitude in the next meetings….” The move follows … Continue reading “Brazil Central Bank Deliver Third 50bps Rate Cut in a Row to 12.25%”

Brazil Central Bank Cut Rates 50bps to 12.75%, Signals More Cuts

Banco Central do Brasil​ cut the Selic rate 50bps to 12.75% at its September meeting in line with market expectations. It was the second half a percentage point cut in a row and signaled it will keep the same pace of monetary easing at least through year’s end. The Brazilian real fell 0.7% in response. Annual inflation is within the bank’s tolerance range and closely watched services price pressures are waning. Several Latin American countries have also been relaxing monetary … Continue reading “Brazil Central Bank Cut Rates 50bps to 12.75%, Signals More Cuts”

Brazil Central Bank Left Rates Steady at 13.75%, Delete Reference to Possibly Resuming Hiking

Banco Central do Brasil​ kept its benchmark interest rate unchanged in June 2023, in line with market expectations. The board guidance emphasized “patience and serenity in the conduct of monetary policy” while deleting reference to possibly resuming the tightening cycle. Further hike risk is therefore gone at this point but the central bank is not yet paving the way for nearer term easing. The Central Bank last year aggressively hiked its benchmark interest rate with twelve consecutive interest rate hikes … Continue reading “Brazil Central Bank Left Rates Steady at 13.75%, Delete Reference to Possibly Resuming Hiking”

US Debt Ceiling Deal Done, What is In and Out, the Next Steps

U.S. President Joe Biden and Speaker Kevin McCarthy have struck a tentative deal on Saturday to raise the US debt ceiling in an ‘agreement in principle’. If approved, it averts a looming default that will bring relief to nervous markets and bring a sense of relief to the global economy. This was the 79th time it’s been raised since 1960. The US has defaulted four times, the last 1971 when the U.S. left the Bretton Woods convention. Next step is … Continue reading “US Debt Ceiling Deal Done, What is In and Out, the Next Steps”

Brazil Central Bank Left Rates Steady for Sixth Month at 13.75%, Less Likely to Resume Hikes

Banco Central do Brasil​ kept its benchmark interest rate unchanged for the sixth consecutive meeting in February 2023, in line with market expectations. This was the bank’s first monetary policy meeting after the new government proposed its long-awaited new fiscal rules. The board said it is “less likely” to resume hikes saying they decided to maintain its strategy for a longer period to ensure the convergence of inflation, while won’t hesitate to resume the tightening cycle if the disinflationary process … Continue reading “Brazil Central Bank Left Rates Steady for Sixth Month at 13.75%, Less Likely to Resume Hikes”

Bank Negara Malaysia Surprises by Raising Interest Rates 25 bps to 3%

The central bank of Malaysia, Bank Negara Malaysia surprised markets by raising its key overnight policy rate by 25 basis points to 3% in the May meeting of 2023 on Wednesday. Bank Negara had kept rates unchanged at its two previous meetings this year, as it sought to assess the impact of four consecutive hikes totaling 100 basis points in 2022. said the stance of monetary policy remained accommodative and supportive of economic growth. Policymakers said, “With the domestic growth prospects … Continue reading “Bank Negara Malaysia Surprises by Raising Interest Rates 25 bps to 3%”

Prime Minister Kaja Kallas Confirmed to Lead New Estonia Coalition Government

Estonia’s Prime Minister Kaja Kallas confirmed Saturday that she will lead the government of Estonia for the next four years following lengthy talks. Kallas’ pro-business Reform Party overwhelmingly won Estonia’s March 5 parliamentary election with 31.2% of the vote. It has formed a coalition with the centrist Estonia 200 party and the Social Democratic Party after agreeing on government programs. Kaja Kallas has been seen as one of the most forceful and productive leaders in Europe since Russia invaded Ukraine … Continue reading “Prime Minister Kaja Kallas Confirmed to Lead New Estonia Coalition Government”

Brazil Central Bank Left Rates Steady for Fifth Month at 13.75%, Noted Resilient Inflation

Banco Central do Brasil​ kept its benchmark interest rate unchanged for the fifth consecutive meeting in February 2023, in line with market expectations. The decision however defied intense pressure from the new government of President Luiz Inacio Lula da Silva to reduce borrowing costs. Policy makers cited rising inflation expectations, with the annual rate at 5.79% in December 2022 which was recorded in double digits from September 2021 to July 2022. The Brazil decision came just hours after the US … Continue reading “Brazil Central Bank Left Rates Steady for Fifth Month at 13.75%, Noted Resilient Inflation”