Brazil central bank signals rate-cut cycle but vows to keep policy tight

BRASILIA, Feb 3 (Reuters) - Brazil's central bank said on Tuesday it found it appropriate to signal the start of an interest-rate easing cycle at its next meeting, but stressed the need to keep borrowing costs at restrictive levels until the slowdown in price pressures is firmly consolidated and expectations are aligned with the target.

In the minutes from its latest policy meeting, where it held the benchmark Selic rate at 15% for the fifth straight time, the bank said the size and length of the forthcoming rate-cut cycle will be defined as new data come in, allowing a more precise assessment of economic conditions.