The Key Risks of the Central Bank Cutting Cycle

The risk of potentially changing the inflation target, not materializing and that leading to an important decline in inflation expectations. This was most likely what really drove the decision for the central bank to start the cutting cycle. And also recall that in terms of real yields, Brazil continues to have one of the highest amongst the other economies. So this is also one of the reasons why it makes sense for the centralBank to start the easing cycle.