⁍ Brazil central bank seen cutting rates to record low of 2%.
⁍ Most Latam currencies rise against weakening dollar.
⁍ Petrobras lifts Bovespa as oil prices jump.
– Brazil’s central bank is expected to cut its key interest rate to a record low of 2% on Wednesday, in the ninth easing cycle that began under President Jair Bolsonaro. The bank’s rate-setting committee, Copom, is set to cut the rate 25 basis points to a record low of 2% later in the day, Reuters reports. The cut would be the ninth in the easing cycle, as policymakers initially sought to boost the economy in light of Bolsonaro’s poor results in attracting more investment at the beginning of his term. “Following the massive collapse in growth caused by COVID, the current economic indicators in Brazil are signaling an economic recovery, but pre-crisis levels are still a long wayoff,” says Alexandra Bechtel, analyst at Commerzbank. “The bar is set high for further rate cuts, in particular as more stable framework conditions (budget deficit etc.) would be required for lower rate levels.”
Source: https://www.reuters.com/article/emerging-markets-latam/emerging-markets-latam-assets-rise-brazils-real-steady-ahead-of-expected-rate-cut-idUSL1N2F7113