MNI BRIEF: Brazil’s Copom Cuts 50BPS, Set To Keep Easing Pace

The Central Bank of Brazil reduced its official Selic rate by 50bps to 11.25% for the fifth consecutive time on Wednesday and indicated more cuts of the same size in the "next meetings," keeping the plural forward guidance language that effectively commits policymakers to the current pace of easing until at least the May decision.

"If the scenario evolves as expected, the Committee members unanimously anticipate further reductions of the same magnitude in the next meetings, and judge that this pace is appropriate to keep the necessary contractionary monetary policy for the disinflationary process," repeated the statement. (See MNI: Inflation Expectations Seen Key To Pace Of Brazil Easing)

Copom repeated that the current context "requires serenity and moderation in the conduct of monetary policy." Brazil's easing cycle started in August last year when the interest rate peaked at 13.75%. Since then, the BCB's board has been sticking to the 50bp pace per meeting. (See MNI POLICY: Brazil's Copom Sticks To 50BP Cuts As Doves Fly)