Brazil: 25bp cut by BCB looming? - Nomura

Sandeep Kanihama FXStreet Contributor

Benito Berber, Research Analyst at Nomura, points out that the central bank of Brazil is scheduled to meet today and they expect a 25bp cut, to 6.25%.

Key Quotes

“This would be, once again, a historical low and the last cut in a cycle that began at 14.25%. Central bank communication and inflation/activity data have been very supportive of this final lowering of the Selic rate. However, the recent sell-off in the BRL has raised risks to stability, and we believe this could be a reason for caution going into the meeting.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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