Brazil: BCB likely to cut rates by 50bps – TDS

Analysts at TD Securities expect the BCB to cut rates by 50bps in order to provide further economic support to a struggling economy that is at risk of undershooting its inflation target this year.

Key Quotes

“The improved prospect for a solid pension reform has improved the risk/reward profile that further easing presents. Given our view that it benefits the BCB to engage in further substantial easing sooner and more rapidly, we expect another 50bps at the September meeting.”