To: Julius Wong who wrote (2392 ) 11/2/2023 3:14:41 AM From: elmatador Respond to Brazil cenbank cuts rates, with more likely to come, but flags 'adverse' backdropr educed its Selic benchmark interest rate to 12.25%, estimates for the easing cycle, forecasting rates to end 2024 at 9.25%, up from 9% before. Policymakers revised their inflation projections to 4.7% for this year, down from 5.0% before, now standing within the official target of 3.25% with a tolerance margin of 1.5 percentage points in either direction. Marcela Ayres November 2, 20232:12 AM GMT+3Updated 8 hours agoeduced its Selic benchmark interest rate to 12.25%, a move expected by all 40 economists polled by Reuters.the committee members unanimously anticipate further reductions of the same magnitude in the next meetings, and judge that this pace is appropriate to keep the necessary contractionary monetary policy for the disinflationary process," said the central bank in its decision's statement.did not need to erase its primary budget deficit next year, as previously proposed to Congress under new fiscal rules, given the importance of public funding for priority projects and construction investments.market distrust of the government's fiscal targets as one of the reasons why long-term inflation expectations were not converging to the target, reaffirmed in its statement the importance of "firmly pursuing" the fiscal goals.
