June 2, 2017 |
Brazil's central bank has lowered its benchmark lending rate by 100bp to 10.25% but signaled it could slow the pace of cuts in the months ahead.
The Brazilian economy has stabilized, but the political uncertainty surrounding proposed labor and pension reforms could have a detrimental effect over the rest of the year, the bank's monetary policy committee, or Copom, said in a statement.
Copom also said inflation expectations now stand at 4% for 2017 and 4.6% for 2018.
"This scenario assumes a
Central bank drops its benchmark Selic for the sixth time in a row, hitting the lowest level in more than three years