Brazil's central bank cut interest rates in December to record low early next ye

Reuters survey shows that Brazil's central bank next week expected to cut interest rates to record lows, and may cut interest rates again early next year to push up inflation expectations toward official goals.

Of the 50 analysts surveyed, 49 think Brazil's central bank will cut interest rates sharply by 50 basis points to a historic low of 7.00% after it ends its two-day policy meeting on Wednesday.

The only dissident is HSBC, the estimated cut of 25 basis points to 7.25%.

Most analysts expect Brazil's central bank to cut interest rates again in February next year, but this is far from the common view that 18 analysts expect the central bank to hold its hands.

Of the analysts who forecast cutting interest rates again in February next year, 21 think the central bank will cut interest rates by 25 basis points to 6.75% by the time, and nine think it will cut 50 basis points.

Uncertainty may push the central bank to keep its options open next week.

"In a previous policy statement, the central bank said it would be appropriate to cut interest rates by 50 basis points if everything remained roughly the same, in fact the situation did not change much," said UBS analyst Fabio Ramos.