Brazil to keep slow pace of rate cuts amid political turmoil: Reuters poll

Brazil’s central bank probably will continue cutting interest rates at a glacial pace next week despite a deepening recession, a Reuters poll showed on Friday, as a new political scandal weakened the currency and cast doubts on austerity measures.

All but 10 of the 61 economists surveyed by Reuters expect the central bank in its second consecutive meeting to trim the benchmark Selic rate by 25 basis points to 13.75 percent on Wednesday. The remainder forecast a 50-point cut.

On the same day, data probably will show Brazil’s historic recession deepened between July and September with a 0.8-percent seasonally adjusted drop, according to the poll.

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