Brazil Central Bank Set for Meek Rate Cut as Inflation Limits Options

Brazil’s central bank will likely deliver a timid interest rate cut for the second straight meeting as an energy price shock and fresh fiscal stimulus limit a window of opportunity to unwind tight monetary policy.

Policymakers led by Gabriel Galipolo will lower the benchmark Selic a quarter-point to 14.5% on Wednesday, according to all economists in a Bloomberg survey except one who sees a hold. Central bankers cut borrowing costs at their prior decision in March after keeping them steady at 15% for about nine months.