The Focus report, published by Brazil’s Central and that gathers estimates from private financial institutions, forecasts that interest rates would be cut in the country twice in a short period of time. The first cut would happen this Wednesday and the rate would 0.5 percentage point to 7%. The second cut would happen just in February of 2018, but the rate would only be cut by 0.25 percentage point.
The new is relevant for the grain market because it affects the competitiveness of Brazil’s Real and the growth of the Brazilian economy, that would be boosted in 2018. Inflation expected for 2017 is 3.06%, while the inflation target was 4.5%.