Brazil Central Bank cuts benchmark rate by 75 bp to 7.5%

Brazil central bank has cut its benchmark rate by 75 bp to 7.5%, noting that the interest rate decision was unanimous. 

Headlines via Reuters

Says moderate reduction of pace of easing could be appropriate at next meeting given stage of cycle.

Monetary easing will continue to depend on economic activity, balance of risks, inflation outlook.

Bank removes reference to expectation of gradual end to easing cycle.

Forecasts 2017 inflation at around 3.3 pct vs 3.2 pct in quarterly inflation report.

Forecasts 2018 inflation at around 4.3 pct vs 4.3 pct in quarterly inflation report.

Forecasts 2019 inflation at around 4.2 pct vs 4.2 pct in quarterly inflation report.

Says downside risks for inflation include possible secondary effects of favorable food price shock and low industrial inflation.

Says downside risks for inflation include possible price inertia extending low inflation over time.