Brazil Savings Rate Signal Further Selic Lows: Analysts

Brazil Savings Rate Signal Further Selic Lows: Analysts

Brazil Economy & Policy

New Brazilian rules tying savings accounts to the Selic benchmark interest rate, rather than to a fixed rate, could open the door to Selic cuts beyond what was expected, analysts say. "The government would not buy the political cost of making this change if it wasn't to bring rates towards a much lower level," Bank of America Merrill Lynch says. BAML sees the Selic rate ending this year at 7.75%, with two cuts of 50bp in May and July and one last cut of 25bp in August. Citi also sees the rate fi

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