Central banks across Latin America are in a phase of monetary easing, with Brazil's central bank likely to cut its key Selic rate by 50 basis points to 11.25%, aiming for a rate of 8.50% by year-end through cumulative cuts of 325bps, although markets are pricing in less than 250bps. This expected cut would be the fifth in a row, coinciding with inflation falling within the tolerance range for the first time since 2020. Chile's central bank has cut its key interest rate by a full percentage point to 7.25%, marking its fifth consecutive cut, while Colombia's central bank has lowered its rate by 25 basis points to 12.75%. Mozambique's central bank has also reduced its interest rates for the first time since 2020. These measures reflect a broader trend of rate cuts across the region in response to slowing economic activity and are in line with market expectations.
The central bank of Brazil reduced its key Selic rate by 50 bps to 11.25% in its January meeting, in line with expectations. The Committee observed that economic activity indicators align with the anticipated economic slowdown. Consumer headline inflation continues on a…
Chile’s central bank slashed its key interest rate by a full percentage point, speeding up the pace of monetary easing for the second meeting in a row after inflation slowed more than expected last month https://t.co/fc4XGsckr2
Global Central Bank Update: -Chile cut rates for the 5th meeting in a row, 100 bps decrease to 7.25%. -Brazil cut rates for the 5th meeting in a row, 50 bps decrease to 11.25%. -Colombia cut rates for 2nd month in a row, 25 bps decrease to 12.75%. https://t.co/7BZbhXPBgl
While the FOMC held rates steady, multiple Latin American central banks cut. In Colombia, rates were cut by 25 bps, Chile's central bank cut by 100 bps, and in Brazil rates were cut by 50 bps. Read more in tonight's Closer: https://t.co/DJ6Bf7KZHE https://t.co/wxzhSJfrKa
Brazil’s central bank cut its key interest rate by half a percentage point, maintaining its easing pace after inflation slowed within the tolerance range for the first time since 2020 https://t.co/xkNWdBQcaL
Brazil's Copom cuts rates by 50 bps to 11.25% as expected, keeps guidance anticipating similar cuts over 'next meetings' https://t.co/pijqOMilku
Day of rate cuts in Latin America today (Brazil now): 🇨🇴⬇️25 basis points to 12.75% 🇨🇱⬇️100 basis points to 7.25% 🇧🇷⬇️50 basis points to 11.25% all according to expectations https://t.co/uOuSYco7ux
Chile Central Bank Slashes Interest Rate by Full Percentage Point as Inflation Withers https://t.co/esmOMfId9P
Day of rate cuts in Latin America today: 🇨🇴⬇️25 basis points to 12.75% 🇨🇱⬇️100 basis points to 7.25% 🇧🇷 after 4.30 p.m. NY https://t.co/lDa86LHwK4
Mozambique’s central bank cuts interest rates for the first time since 2020 https://t.co/FJJglF8KLz via @economics
Never mind Fed Day tomorrow -- in Latam we will have the central banks of Brazil, Colombia and Chile all likely cutting interest rates 🇧🇷🇨🇴🇨🇱 here is what the region's banks should do next, via @opinion https://t.co/j1oGcTUfbG
Brazil's central bank will likely deliver a 50bps rate cut tomorrow, as widely expected by the market. We put the Selic rate at 8.50% by year-end, reflecting cuts of 325bps. While markets are pricing less than 250bps in cuts, deeper easing seems more consistent with past cycles. https://t.co/KnSRPhs2Fk