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Brazil has more room to cut rates, but not much more: Campos Neto

Published 07/02/2020, 03:50 PM
Updated 07/02/2020, 03:55 PM
© Reuters. Brazil's Central Bank President Roberto Campos Neto attends a news conference, amid the coronavirus disease (COVID-19) outbreak, in Brasilia

BRASILIA (Reuters) - Brazilian interest rates have room to fall further, but not much more, central bank President Roberto Campos Neto said on Thursday, warning that continued cuts from current record lows could trigger unwanted effects.

© Reuters. Brazil's Central Bank President Roberto Campos Neto attends a news conference, amid the coronavirus disease (COVID-19) outbreak, in Brasilia

The central bank reduced its benchmark Selic rate to 2.25% last month, bringing real rates close to zero. Policymakers have said that further easing could destabilize financial markets.

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