Nigeria's central bank cut its policy rate 350 basis points to 23% in one sitting, dwarfing Brazil's routine quarter-point trim. Emerging-market central banks are moving the same direction at wildly different speeds.
Inter chief economist Rafaela Vitoria says Focus now prices one more 25bp Selic cut this year to 13.50%, while her desk still sees 13.25% by December 2026 on weaker activity. Source
Emerging-market (EM) central banks agreed on the direction Tuesday and violently disagreed on the pace. Brazil trimmed a quarter point for the fifth straight meeting. Nigeria cut fourteen times that size in a single sitting. Both moves are ostensibly about the same thing: inflation coming off the boil enough to ease. The gap between them is the story.
