1036 ET - Brazil's central bank could start cutting the country's steep borrowing costs by December, Bank of America economists write. The BCB raised rates to 14.75% last month and is expected to remain on hold this month. BofA says the high interest rate helps make financial conditions tighter now than a year ago. A recent increase in the tax over financial transactions adds to the tightness, BofA says. The more restricted financial environment "should cool down activity, supporting the Central Bank to start the easing cycle in December," BofA says. On the other hand, a weakening dollar eases financial conditions for Brazilians, the analysts say. (paulo.trevisani@wsj.co0m; @ptrevisani)

(END) Dow Jones Newswires

June 02, 2025 10:36 ET (14:36 GMT)

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