Brazil’s central bank cuts its rate by 25bp

Decision of the Monetary Policy Committee of the Central Bank of Brazil (Copom):

• 5 COBOOM members voted in favor of a 25 basis point reduction, and 4 members voted in favor of a 50 basis point reduction.

• The Committee unanimously considers that the uncertain global scenario and the domestic scenario, characterized by resilient economic activity and volatile expectations, require increased caution.
• Monetary policy should continue contraction until disinflation is consolidated and expectations around targets are stabilized
• Emphasizes, with particular emphasis, that the extension and adequacy of future interest rate changes will be determined by a firm commitment to reaching the inflation target over the appropriate horizon.
• The current context requires calm and moderation in the management of monetary policy
• The global environment has become more negative due to the increasing and continuing uncertainty regarding the beginning of the monetary easing cycle in the United States
• The environment continues to require caution from emerging market economies

This article was written by Eamonn Sheridan at www.forexlive.com.

The post Brazil’s central bank cuts its rate by 25bp first appeared on Investorempires.com.