0859 ET - Brazil's central bank is likely to keep cutting its steep interest rates, although the Fed's reluctance to ease, resilient domestic activity and unchecked government spending are making the BCB less dovish, Highpar's Maykon Douglas says in a note. Last night, the bank cut its Selic benchmark rate by 25 basis point to 10.5%, after six consecutive 50-b.p. trims and previous guidance indicating the more aggressive pace would be kept. "The strong market repricing of the start of the Fed's cutting cycle weighs on emerging markets," Douglas says. He points out that the BCB's decision was split and the bank removed guidance. Douglas expects two more 25-b.p. cuts this year. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
May 09, 2024 08:59 ET (12:59 GMT)
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