Brazil Cuts Selic by 50bp

In line with market expectations, Brazil’s central bank has cut the Selic rate by 50bp to 10.5%. “To mitigate the effects coming from a more restrictive global environment, a moderate adjustment in the basic rate is consistent with the scenario of inflation converging with the target in 2012,” the bank says in a statement. Several shops expect further cuts, including Itau, which forecasts 9% by May.