Brazil's central bank suggests more rate cuts to come
- The monetary policy committee at Brazil's central bank said it could cut the benchmark Selic interest rate by as much as another 0.75% at its next meeting in June "to counteract the economic consequences of the COVID-19 pandemic."
- The committee, known as Copom, unanimously voted to lower the Selic by 0.75 basis points to 3%, a record low, on Wednesday, concluding that the economic slump calls for "an unusually large monetary stimulus,"
- Meanwhile, inflation could fall short of the target range if the economy remains sluggish for a prolonged period, but it could rise above expectations if the government's response to the coronavirus pandemic jeopardizes economic reforms.
(Source: Latin Finance)