The Banco Central Do Brasil dropped the Selic interest rate by 50 basis points to 12.00% from 12.50% previously. In its statement, Brazil’s Central Bank Monetary Policy Committee (Copom) said: “Reevaluating the international scenario, the committee considers that there has been substantial deterioration, shown by, for example, generalized and large reductions in growth projections for the principal economic blocks. The committee understands that this increases the chances that restrictions that are today seen in various mature economies will prolong themselves for a longer period than expected.” …”Therefore, the committee understands that the international scenario shows a bias toward disinflation on the relevant horizon.”
