Brazil Seen Easing by 100bp

Brazil’s central bank is expected to cut its Selic rate by 100bp to 10.25% April 29. Bank of America-Merrill Lynch believes that after this 100bp cut, weak activity data should lead to lower the Selic to 9.25% by June. In February, IP dropped 17% compared to February 2008, the shop says. ING, meanwhile, also calls for a deceleration in the easing pace to a 100bp cut in Selic rate April 29. On March 12, the central bank made a 150bp cut.