Adam Capital Confirms September Selic Cut Outlook

Amid a series of cuts in the benchmark interest rate, Juliano Cecílio, Chief Economist at Adam Capital, reiterates his stance favoring a 0.25 percentage point reduction in the Selic during the upcoming Copom meeting scheduled for September. Although he views recent decisions to cut rates as 'inadequate,' Cecílio sees the latest statement from the Monetary Policy Committee (Copom) as neutral and optimistic within his own scenario. He highlights the absence of elements justifying a change in the current trajectory, thus maintaining expectations for continued cuts in benchmark interest rates. This position aligns with the global monetary cycle's phase of normalization, where central banks worldwide are adjusting their policies to address specific economic challenges. For Cecílio, the preference of the Central Bank for cutting the Selic remains despite uncertainties regarding future impacts from fiscal policy. Source: Valor Econômico