Brazil Cuts Selic Another 100bp

Brazil’s central bank cut the Selic rate by100bp Wednesday, reducing it to 10.25%. The move is in line with market consensus. Looking ahead, expectations vary across shops. RBC expects one last 50bp Selic rate cut in June to 9.75%, while BofA-Merrill Lynch expects another 100bp cut in the June meeting to wrap up the easing cycle with the Selic at 9.25%. Morgan Stanley, meanwhile, estimates the central bank will cut an additional 150bp cut in June, leaving the Selic rate at 8.25%.