Brazil Sees Room for More Rate Cuts as Benchmark Falls to 14.25%
Updated
Updated · Reuters · Jun 18
Brazil Sees Room for More Rate Cuts as Benchmark Falls to 14.25%
3 articles · Updated · Reuters · Jun 18
Summary
Dario Durigan said Brazil still has room for further interest-rate cuts, a day after the central bank lowered its benchmark rate for a third straight meeting to 14.25%.
The bank left its next steps open even as it warned of a worsening inflation outlook, with annual consumer inflation at 4.72% in May and a 2026 full-year projection of 5.2% against a 3% target.
Durigan said the government is trying to reinforce disinflation through fiscal tightening, including a 23 billion reais ($4.51 billion) budget block meant to support monetary policy.
He also defended discussing updates to Brazil's inflation-calculation methodology to reflect current household spending, while saying he respects the existing index and has not sought changes because prices are rising.