20 Oct 2016
Brazil cuts interest rates after 4 years
Central bank cut Selic rate by 25 basis points to 14%
Brazil's central bank has cut interest rates for the first time in four years, in what is expected by analysts to be a kick start on the country's first monetary easing since 2012.
The monetary policy committee cut the benchmark Selic rate by 25 basis points to 14% from a near-decade high of 14.25%
In a statement, the central bank pointed that the ease on inflation pressure, especially on food prices, and an increasing confidence paved the way for the reduction. Future cuts are expected, but they will depend on the performance of economic indicators.