There is room for the Central Bank of Brazil to cut interest rates further if inflation and inflation expectations remain below target, according to a new report from the International Monetary Fund.

Since the start of the year, the central bank has cut the policy rate 225 basis points to 2% in response to the Covid-19 pandemic.

But staff from the IMF believe the central bank has been “cautious”, and should inflation remain low, and inflation expectations anchored, interest rates may need to

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