Brazil shaves rates to single digits

Brazil shaves rates to single digits

Brazil Economy & Policy Corporate & Sovereign Strategy

Brazil’s central bank has cut its benchmark lending rate by 100bp to 9.25%, dropping it below 10% for the first time since October 2013.The rate cut adhered to market expectations, due to a calmer political scenario, legislative progress on proposed reforms, a favorable outlook for inflation and sluggish economic growth, Marcelo Carvalho, the head of emerging market research for Latin America at BNP Paribas, said in a report.Lower inflation in Brazil has resulted in a rise in real interest rates

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