Brazil central banks cuts its benchmark rate by 50bp (vs. 25bp cut expected)

Brazil’s central bank, Banco Central do Brasil​, has cut its benchmark rate, Selic target rate, by 50 basis points.

The consensus was for a 25bp cut. The Bank says that 25 was considered but the improvement in inflation dynamics was enough for a 50 point move:

• the current situation demands serenity and moderation in the conduct of
  monetary policy
• if expected scenario
  is confirmed, the committee unanimously expects a rate cut of same
  magnitude in coming meetings
• the total magnitude of
  easing cycle will depend on the inflationary dynamics, inflation
  expectations, inflation projections, output gap and the balance of
  risks