BRASILIA: Brazil’s central bank has adopted a new “forward guidance” strategy to keep interest rates and bond yields low, bring inflation up to target and stimulate the economy’s fragile recovery from the Covid-19 crisis.
The move, outlined last week when the bank cut its benchmark Selic rate to a low of 2% and explained in meeting minutes on Tuesday, highlights a reluctance to cut rates further, and even more so to indulge in bond-buying quantitative easing.
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