Weak dollar paves way for interest rate cut in 2025, says economist
💡 WHAT'S IMPORTANT TO KNOW:
💰 Poder Economia | Economist André Perfeito, 47, believes there is room for the BC (Central Bank) to start the Selic rate cut cycle as early as the end of 2025. According to the expert, there are 2 factors that would influence the drop in Brazil's basic interest rate, currently at 15% per year:
– cut in the US base interest rate – The rate is in the range of 4.25% to 4.50% per year. “If it is true that the United States should start cutting the interest rate by the end of the year, and I am not the one saying this, it is the US interest market itself, when you see implicitly in the price of assets, how much the interest rate would be expected there”, he tells Poder360; – devaluation of the dollar – According to Perfeito, a cut in the Selic rate will be possible at the end of 2025 or at the beginning of 2026 “if the idea of a dollar currency losing strength persists”.
📲 Interested? Read the report on Poder360: https://www.poder360.com.br/poder-economia/dolar-mais-fraco-da-espaco-para-cortar-juros-em-2025-diz-economista/.
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