Brazil’s annual inflation fell to its lowest level since September 2020, data from Brazil’s statistics agency showed, according to “Reuters.”
The annual decline in inflation in Brazil has renewed bets that an interest rate cut is imminent, with consumer prices still falling.
Annual inflation in Brazil slowed to 3.16% in June, in line with the market consensus of 3.17%.
The numbers are likely to support expectations that the central bank will start cutting interest rates next month after striking a dovish tone at its last meeting in June, saying an August cut is possible if the positive inflation scenario continues.
Brazil’s central bank has conducted one of the world’s most aggressive tightening courses since early 2021 in an effort to curb soaring inflation, with the main exchange rate hitting a six-year high of 13.75% since August 2022, according to “Reuters.”
