Goldman Sachs: The Central Bank of Brazil is expected to alternate between cutting interest rates and holding steady

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Golden Finance reports that on June 23, Alberto Ramos from Goldman Sachs wrote that the Central Bank of Brazil may alternate between pausing rate cuts and lowering its benchmark Selic rate. Last week, the Central Bank of Brazil reduced the Selic rate from 14.5% to 14.25%, and its next move remains unclear. Amid persistent inflation and economic slowdown risks, the meeting minutes provided some insight into the central bank's thinking. Ramos said that intermittent rate cuts "will lead to milder output fluctuations, and inflation will converge to the target level in the first quarter of 2028." He stated, "Overall, in the short-term trade-off between growth and inflation, the Copom is more inclined to protect economic activity rather than adopt a more aggressive inflation-focused strategy."
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