Morgan Stanley says lower rates could lift profits at Brazilian companies

Morgan Stanley says further interest-rate cuts could boost profits at Brazilian companies.

Lower rates can reduce borrowing costs, especially for companies with more debt.

The bank estimates that a 1-point Selic cut would raise 2028 profits by an average of 9.3% for domestic small caps.

That could matter for investors because recent share-price gains have not yet been matched by higher profit forecasts.