Banco Central do Brasil's monetary policy committee, or Copom, unanimously decided to cut its Selic rate by 0.25 percentage point to 6.75% per year, citing the favorable evolution of is baseline scenario and the stage of its monetary easing.
The central bank said its baseline inflation scenario evolved as expected and remained favorable, adding that its inflation projections stand at around 4.2% in 2018 and 2019. Copom added that its scenario "assumes a path for the policy interest rate that ends 2018 at 6.75%, and 2019 at 8.0%."
The bank also cited the consistent recovery of the Brazilian economy as suggested by a set of economic indicators and a favorable global outlook.
"Regarding the next meeting, provided the committee's baseline scenario evolves as expected, at this time the Copom views the interruption of the monetary easing process as more appropriate," the bank said.
