Brazil’s Central Bank Mulls Smaller Interest Rate Cuts Amid Economic Uncertainties

Brazil’s central bank is considering smaller interest rate cuts in light of heightened economic uncertainties and the requirement for greater monetary policy flexibility. The minutes from the March 19-20 rate-setting meeting revealed discussions among board members regarding the appropriateness of a slower pace of monetary easing in the future, following the recent lowering of the benchmark Selic to 10.75%. Spearheaded by Roberto Campos Neto, central bankers have been implementing 50 basis points interest rate reductions at each meeting since August.