Brazil markets fall as central bank split decision triggers concern about dovish turn

BRASILIA, May 9 (Reuters) – Brazil’s markets fell on Thursday after the central bank cut rates in a split decision that saw appointees of the current government advocating for a larger reduction, sparking concerns of a forthcoming dovish monetary policy influenced by politics.

The Brazilian real weakened over 1% against the dollar while the yield curve on interest rate futures steepened, with longer-term futures jumping as much as 30 basis points.