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Brazil central bank starts easing with 25-bp cut as oil shock stokes inflation fears

BY Reuters | ECONOMIC | 05:43 PM EDT

BRASILIA, March 18 (Reuters) - Brazil's central bank cut interest rates by 25 basis points on Wednesday, in line with market expectations that shifted toward a modest start to monetary easing after an oil shock from the U.S.-Israel war against Iran fueled global inflation concerns.

The bank's rate-setting committee, called Copom, unanimously voted to lower the benchmark Selic rate to 14.75%, after five straight meetings holding it at 15%, the highest level since July 2006.

A Reuters poll last week had pointed to a median forecast for a steeper 50-basis-point cut. However, a weekly survey of economists conducted by the central bank showed expectations shifting to a 25-basis-point reduction, also reflected in Brazil's interest rate curve. (Reporting by Marcela Ayres Editing by Brad Haynes)

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