Brazil Cuts Rates, Aims For “Maximum Parsimony”

Brazil Cuts Rates, Aims For “Maximum Parsimony”

Brazil Economy & Policy

Brazil’s central bank opted unanimously on Wednesday to cut its benchmark Selic rate by 50bp to a new record low of 7.50%, in a bid to boost growth. The move marks the ninth consecutive cut by Banco Central do Brasil, which has lowered borrowing costs by 500bp since last August. A statement accompanying the decision suggested that further adjustments to policy would be carried out with “maximum parsimony” – wording that prompted Barclays to revise its call for the October Copom meeting to a 25bp

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