Brazil Central Bank Cuts Selic to 14.25% as Markets Slide on Inflation Warning
Updated
Updated · Bloomberg · Jun 18
Brazil Central Bank Cuts Selic to 14.25% as Markets Slide on Inflation Warning
3 articles · Updated · Bloomberg · Jun 18
Summary
Brazilian assets sold off Thursday after the central bank cut the benchmark Selic rate to 14.25%, a move investors criticized because policymakers simultaneously signaled a worsening inflation outlook.
Board members said both economic growth and inflation had accelerated, and warned that stimulus measures could further lift consumer prices already running above target.
Gabriel Galípolo's central bank delivered the cut late Wednesday, matching the expectation of 31 of 34 economists in a Bloomberg survey.
The market reaction underscored concern that easing policy now could deepen price pressures even as the bank acknowledges rising inflation risks.