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MNI BCB Review - Jan 2024: Current Easing Strategy Remains In Place

MNI BCB Review - January 2024

MNI BCB Review - January 2024

Executive Summary

  • At the January 31 meeting, the Copom decided to cut the Selic rate by 50bps to 11.25%. The decision was adopted by all members of the committee.
  • Furthermore, the central bank maintained the guidance of anticipating “further reductions of the same magnitude in the next meetings”.
  • The committee continues to judge that that the 50bp easing pace “is appropriate to keep the necessary contractionary monetary policy for the disinflationary process.”
  • Analysts remain confident that the 50BP easing pace will remain in place for now, although some do highlight the scope for an acceleration of the cutting pace at some point in 2024. Forecasts for the terminal Selic rate appear to be ranging between 8.5% and 9.5%.

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