Brazil’s Central Bank Sees Key Rate Falling to Single Digit

Brazil’s central bank said there is a “high” chance its benchmark rate will drop below 10 percent, signaling it remains focused on spurring economic growth even as record-low unemployment pressures consumer prices. Yields on interest rate futures plunged.

The bank’s board, led by President Alexandre Tombini, said it sees significant structural changes in Brazil’s economy that will allow it to continue lowering borrowing costs, according to the minutes from its Jan. 17-18 meeting published today.