Has inflation, Brazil’s eternal bogeyman, finally been slain?

Inflation in Brazil is on course to fall to an all-time low this year as Latin America’s largest economy sinks, giving the central bank leeway to keep interest rates lower for longer or reduce them closer to zero.

The crisis unleashed by COVID-19 will likely cause the biggest fall in gross domestic product since records began in 1900. With unemployment set to hit its highest rate in decades, demand is expected to tumble, exerting a strong downward force on inflation.

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