Early Thursday morning in Asia, Brazilian central bank Banco Central do Brasil met market-wide expectations while announcing a 50 basis point (bps) cut to its benchmark rate of 5.50% now.
Key quotes (via Reuters)
“Decision was unanimous.”
“Consolidation of benign inflation outlook should give room for additional policy stimulus.”
“Economic data since last meeting consistent with gradual recovery.”
“Global economic outlook uncertain, risks of greater slowdown persist.”
“Underlying inflation at comfortable levels.”
“The central bank sees Inflation moving back to target over the relevant time horizon, which includes 2020 calendar year but sees inflation risk in both directions.”
With the early Asian market emphasis being quite high on the Antipodeans, USD/BRL rose slightly to 4.1168 after the announcement with more action expected when the Brazilian markets open tomorrow.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.