Amid generally lower inflation rates, the Central Bank may step up cuts in Brazil's benchmark interest rate (known as SELIC), it says in its Inflation Report released Thursday (March 30).

In February, the Monetary Policy Committee (the Central Bank body that analyzes Brazil's economic scenario) announced its unanimous resolution for a fourth straight interest cut—slashing the SELIC by 0.75 percentage points from 13% per annum to 12.25% p.a. This has been the second consecutive 0.75pp cut. The Committee's next meeting has been slated for April 11 and 12.

As the economy recovers and inflation forecasts go down, the Central Bank has suggested it may make larger cuts going forward, which could boost trade and service sales.