Brazil is likely to halt one of the world’s most aggressive rate-hiking cycles on Wednesday, sparing more suffering to a contracting economy despite fears a deepening fiscal crisis could keep inflation high.
All but one of the 30 economists surveyed by Reuters last week expected the central bank to hold its benchmark Selic rate at 14.25 percent, the highest among the world’s 10 biggest economies.
After raising rates by a staggering 325 basis points in 9 months, the central bank has signaled an end to the monetary tightening as markets see inflation easing in coming years.
Fears that more rate hikes could wreck an economy heading into its worst recession in 25 years are also weighing on policymakers. The downturn, in fact, is helping ease inflation as consumption falls.
Brazil Energy Insight 
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