Brazil’s central bank cuts its rate by 25bp

Banco Central do Brasil Monetary Policy Committee (Copom) decision:

• 5 Copom members voted in favour of a 25 bp cut, 4 members voted for a
  50 bp reduction
• Committee
  unanimously judges that the uncertain global scenario and the
  domestic scenario, marked by resilient economic activity and
  deanchored expectations, require greater caution
• Monetary policy
  should continue being contractionary until the consolidation of both
  the disinflation process and the anchoring of expectations around the
  targets
• Reinforces, with
  special emphasis, that the extension and adequacy of future changes
  in the interest rate will be determined by the firm commitment of
  reaching the inflation target in the relevant horizon
• Current context
  requires serenity and moderation in the conduct of monetary policy
• Global environment
  has become more adverse because of the heightened and persistent
  uncertainty about the beginning of the easing cycle in the US
• The environment
  continues to require caution from emerging market economies

This article was written by Eamonn Sheridan at www.forexlive.com.