Barclays says Brazilian central bank's Selic cut cost trust. Roberto Secemski from Barclays pointed out that this move goes against the bank's previous careful approach.
He thinks starting the reduction process more slowly would have been better and helped lower inflation expectations.
Secemski mentioned that making money decisions always involves some give and take.
The choice to reduce by 0.50pp lost trust and might slow progress towards the goal. However, the inflation expectations for 2025 and 2026 remain steady at 3.5%.
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