Brazil Central Bank cuts Selic rate by 50bps to 10.75%, as expected, while committee members unanimously anticipate a further reduction of the same magnitude in the next meeting
Important
SourceNewsquawk
SectionOther Central Banks
Says:
- Forward guidance is contingent upon scenario evolving as expected.
- This monetary policy stance is appropriate to keep the necessary contractionary monetary policy for the disinflationary process.
- Total magnitude of easing cycle over time will depend on the inflation dynamics, expectations and projections, output gap, balance of risks.
- Current context requires serenity and moderation in the conduct of monetary policy.
- Reinforces need to persist with contractionary monetary policy until disinflationary process consolidates and inflation expectations anchor around targets.
- Baseline scenario has not changed substantially.
- Local economic activity remains consistent with the expected scenario of deceleration.
- Headline consumer inflation remains on a path of disinflation.
- Various measures of underlying inflation are closer to the inflation target in recent releases.