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The Brazilian Central Bank (BCB) cut the Selic (policy) rate by 50bps to a new historical low of 3.75%, as expected by analysts at Rabobank and by the consensus. USD/BRL trades at 5.109. 

Key quotes

“The BCB cut the Selic policy rate by 50bps to a new historical low of 3.75%.”

“The authority seems to reveal a cautious flight plan in terms of new stimuli ahead.”

“We keep looking for one more rate cut of 25bps in the next meeting in May, with the Selic ending the year at 3.50%, and still foresee the policy rate at 5.00% by end 2021.”