The monetary policy committee of the Central Bank of Brazil deems it has approached the limit of its monetary policy easing, say the minutes of its last meeting on June 16–17.

Back then, the institution reduced the Selic rate by 75 basis points to a new record low of 2.25%. In 2020 so far, the central bank has cut rates from 4.5% in a bid to prevent the worst economic effects of Covid-19.

Nonetheless, the margin to keep stimulating the economy through lower rates may now be limited. “In this

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