The Brazilian real dropped against the US dollar today after Brazil’s central bank cut its benchmark Selic rate to a record low yesterday.
The Central Bank of Brazil lowered its main interest rate by 50 basis points to 5.5% at yesterday’s meeting. The bank signaled in the statement that it expects to perform more cuts in the future:
The Committee deems that the consolidation of the benign scenario for prospective inflation should permit additional adjustment of the degree of stimulus.
Analysts expect at least one more cut this year, with the Selic rate ending the year at 5%.
USD/BRL climbed 0.75% to 4.1414 as of 16:26 GMT today.
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