Ella 
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Brazil’s central bank should start cutting interest rates today.
Brazil to start easing cycle
The only question for markets seems to be whether the Central Bank of Brazil will kick off the easing cycle with a 25bp or 50bp rate cut.
Rate markets are already pricing in almost 500 bps of easing next year, so probably won’t fall much further, but we think the BRL may not need to sell off as much. After all, real interest rates in the Brazilian real are still largely positive, and recent sovereign rating upgrades and lower volatility suggest that the real will continue to be a recipient of carry trade flows.
