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”

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”

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”

Brazil Central Bank Left Rates Steady for Fourth Month at 13.75%, Cautious Due to Fiscal Risk

Banco Central do Brasil​ kept its benchmark interest rate unchanged for the fourth consecutive meeting in February 2023, in line with market expectations. The Central Bank last year having aggressively hiked its benchmark interest rate with twelve consecutive interest rate hikes since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. Policy makers are seeing signs of easing … Continue reading “Brazil Central Bank Left Rates Steady for Fourth Month at 13.75%, Cautious Due to Fiscal Risk”

Brazilian Real Best Year Since 2016 with Interest Rates at 13.75%

The Brazilian Real at $5.3 closed up more than 6% in 2022 supported by a series of interest rate hikes by the central bank and an upbeat growth outlook. Banco Central do Brasil​ aggressively hiked its benchmark interest rate to 13.75% in twelve consecutive interest rate hikes since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. The … Continue reading “Brazilian Real Best Year Since 2016 with Interest Rates at 13.75%”

Brazil Central Bank Pauses Rates at 13.75%, after Inflation Eased Below 10%

Banco Central do Brasil​ kept its benchmark interest rate unchanged after having aggressively hiked its benchmark interest rate by .50% to 13.75% last month. That move was the twelfth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. Policy makers are seeing early signs of easing inflation, with the annual rate below 10% … Continue reading “Brazil Central Bank Pauses Rates at 13.75%, after Inflation Eased Below 10%”