Brazil rates to hit new low 4.50%, but may be last cut of cycle: Reuters poll

Brazil’s central bank will lower its key interest rate to a new low of 4.50% on Wednesday, according to the unanimous view of economists in a Reuters poll, but stronger-than-expected economic data suggest this may be the last cut in the cycle.

While inflation is well below the central bank’s target and widely expected to stay there next year, growth has picked up, suggesting the economy is beginning to respond to monetary stimulus and the government’s economic reforms.

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