LatinNews Daily - 18 June 2020

* The monetary policy committee (Copom) of Brazil’s central bank (BCB) has cut the benchmark interest rate, the Selic, by 75 basis points to 2.25% – a new record low. The BCB has outlined that this latest interest rate cut is in line with the global economic deceleration caused by the coronavirus (Covid-19) pandemic. The Copom notes that the current economic scenario demands “extraordinarily high” monetary stimulus, while acknowledging that the remaining room for manoeuvre through monetary policy remains uncertain and small. This 0.75 percentage point cut was in line with economists’ expectations, with the Selic expected to be cut further, as low as 1.5%, through to the end of the year.

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