BRAZIL: Interest Rate Should Fall Again In May, Says Central Bank Governor
04/10/2018 - 18:01:00 (RTTNews)
(RTTNews) - Brazilian Central Bank governor Ilan Goldfajn reaffirmed that the Monetary Policy Committee (Copom) should make a final reduction in the benchmark interest rate at its May meeting. In March, the monetary authority cut the country's interest rate by 25 basis points to 6.50% per year - a record low.
"The Committee believes that this additional stimulus mitigates the risk of postponing the convergence of inflation towards the target. The Committee understands that the economic situation prescribes stimulating monetary policy, that is, with interest rates below the structural rate," he said in his testimony to the Senate Economic Affairs Committee.
For the following Copom meetings, Ilan Goldfajn said that an interruption of the Selic rate cycle is appropriate, except for relevant changes in the basic scenario and the balance of risks for inflation.
"Copom points out that the next steps in monetary policy should keep on depending on the evolution of economic activity, the balance of risks, possible reassessments of the estimate of the cycle length and the projections and expectations of inflation," he said.
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