Brazil central bank cautious about ‘easing cycle’

Bloomberg

Brazil’s central bank refrained from providing guidance on its easing cycle beyond its next policy meeting in December, opting instead to signal it will remain cautious in efforts to add stimulus to a weak economy. A benign consumer price outlook should allow for another rate cut “of the same magnitude” next month, the central bank board wrote in the minutes to its last policy meeting. The central bank has cut the benchmark Selic by 50 basis points in each of its past three meetings.
“The Committee discussed the benefits of signaling beyond the next meeting,” central bank board members wrote. “The members of the Copom decided to stress that the current stage of the business cycle recommends caution when considering possible new changes in degree of stimulus.”