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20 Oct 2011

Brazilian central bank cuts interest rate to 11.5 per cent

Brazil's central bank has cut the country's key interest rate to 11.5%, from 12%.

Brazil's central bank has cut the country's key interest rate to 11.5%, from 12%. It is the second consecutive time the government reduces the indicator, after five straight raises in 2011. The bank said that a "moderate adjustment to the base rate" was needed in order "to mitigate from a more restrictive global environment".

Analysts said the latest move showed the bank was more concerned with stimulating the economy than with rising prices. Despite the inflation rate growing to 7.3% in September, the decision was unanimous: all seven members of the bank's rate-setting committee voted for the latest cut.