The Brazilian Central Bank (BCB) cut interest rates by 50bps to 11.0% last night. The ongoing global turmoil, and subsequent negative impact on Brazilian growth, means that further rate cuts are likely. Indeed, we now expect the Selic rate to fall into single digits. We have pencilled in cuts to 9.5% next year, but a disorderly break-up of the euro-zone could see rates fall much further.