Brazil's central bank chief says he cannot anticipate future rate cuts

BY Reuters | ECONOMIC | 05/17/24 09:03 AM EDT

BRASILIA, May 17 (Reuters) - Brazil's central bank chief Roberto Campos Neto said he cannot anticipate future interest rate cuts in the country, after the monetary authority earlier this month voted to slow the pace of its easing cycle citing local and global uncertainties.

"We need time, serenity, and calm to understand how the variables will unfold," he was quoted as saying in an interview with local newspaper O Estado de S. Paulo published on Friday. (Reporting by Marcela Ayres; editing by Gabriel Araujo)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.