BRASILIA (Reuters) – Brazilian interest rates have room to fall further, but not much more, central bank President Roberto Campos Neto said on Thursday, warning that continued cuts from current record lows could trigger unwanted effects.
The central bank reduced its benchmark Selic rate to 2.25% last month, bringing real rates close to zero. Policymakers have said that further easing could destabilize financial markets.
(Reporting by Marcela Ayres and Jamie McGeever; Editing by Leslie Adler)
