"Banco Central do Brasil bombshell!" would be a good headline, but the extent of the cut was widely expected - ah well.
- Selic rate to 7.5%
- The 75bp cut today follows the four previous cuts, each of 100bps
More (summary headlines via Reuters):
- says interest rate decision was unanimous
- says moderate reduction of pace of easing could be appropriate at next meeting given stage of cycle
- monetary easing will continue to depend on economic activity, balance of risks, inflation outlook
- Bank removes reference to expectation of gradual end to easing cycle
- Forecasts 2017 inflation at around 3.3 pct vs 3.2 pct in quarterly inflation report
- Forecasts 2018 inflation at around 4.3 pct vs 4.3 pct in quarterly inflation report
- Forecasts 2019 inflation at around 4.2 pct vs 4.2 pct in quarterly inflation report
- Says downside risks for inflation include possible secondary effects of favorable food price shock and low industrial inflation
- Says downside risks for inflation include possible price inertia extending low inflation over time
