Bruno Serra says most Brazil rate cuts will come after October elections
Updated
Updated · Bloomberg · May 8
Bruno Serra says most Brazil rate cuts will come after October elections
3 articles · Updated · Bloomberg · May 8
The former central bank director, now at Itaú Asset, said policymakers have cut the Selic only 50 basis points since March and see it reaching 11% by mid-2027.
He said an oil shock should make the central bank start easing more slowly, delaying the bulk of reductions until after the October vote.
The remarks point to a cautious path for borrowing costs in Latin America's largest economy as markets assess inflation risks and the election timetable.
Amid an oil crisis, can Brazil's central bank lower crippling interest rates before the pivotal October elections?
As a new Mideast war spikes fuel prices, what can Brazil's government do to win votes without fueling inflation?