Brazilian central bank chief Roberto Neto suggested that declining inflation expectations may lead the bank to consider easing its monetary policy. While the bank will most likely maintain its benchmark interest rate at 13.75% in the upcoming week, there are indications that an easing cycle could be under discussion. Traders and analysts predict the initiation of this easing cycle by August or September, with the key rate possibly decreasing to around 12% by year-end. The country’s annual inflation rate is forecast to fall to 4.5% by year-end.