Brazil central bank discussed smaller rate cuts if uncertainty persists

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Brazil central bank discussed smaller rate cuts if uncertainty persists
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Halifax police investigating Monday morning Dartmouth death as suspicious | SaltWire #newsupdateBRASILIA - Discussions on more modest interest rate cuts in the future emerged within Brazil's central bank rate-setting committee, the bank said on Tuesday, citing the risk of heightened uncertainty domestically and internationally.

Nicolas Borsoi, chief economist at Nova Futura Investimentos, stressed that the inflation breakdown also shows the acceleration of underlying services on a three-month annualized average. This suggested that beyond the next meeting in May, the course of easing may be changed, contrasting with the signaling since the rate-cut cycle began in August, of same-size cuts for the upcoming"meetings", in the plural.

"It would be a mistake to interpret the change in future signaling as an indication of a change in the monetary policy cycle compatible with the baseline scenario," it added.

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