Brazil cuts interest rates and sets new stock market record

English Dec 12, 2019

The Brazilian Central Bank decided to cut the Selic rate again by half a percentage point from 5.0% to 4.5% - the lowest level in its history.

Some managers still maintain the expectation of an additional cut in the benchmark interest rate in 2020 of 0.25 percentage points, bringing interest rates to 4.25% by the end of the year.

As a natural response to the reduction in attractiveness in fixed income, Brazil has seen a substantial increase in the prices of variable income assets. Today (12) the Ibovespa rose 1.11% and renewed its closing high at 112,199.74 points.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.