Brazil's central bank could cut rates below target

• Brazil's central bank could lower the benchmark Selic interest rate below a previously expected floor of 2.25% to help lessen the impact of the coronavirus pandemic on the economy, a bank official said on Wednesday.
• At its last meeting in May, the central banks' monetary policy committee, or Copom, cut the Selic by 75 basis points to a record low of 3% in May and suggested it could lower it by the same amount in June and hold it there through the end of the year.
• A pressing concern, according to Kanczuk, is Brazil's mounting public debt, which could rise to more than 90% of GDP before starting to decline in the future. Brazil's national debt reached a record high of 79.7% of GDP in April, according to figures released by the central bank in late May.

(Source: Latinfinance)