Brazil Signals More Cuts After Reducing Rate to Record Low

Brazil cut its benchmark interest rate to a record low and signaled it will lower borrowing costs further as a fragile world economy contains inflation risks.

Policy makers led by bank President Alexandre Tombini voted unanimously to lower the Selic rate by a half-point to 8.5 percent last night, as forecast by 61 of 70 analysts surveyed by Bloomberg. Policy makers, in a statement, said that inflation risks are “limited” and that “fragility” abroad is having a “disinflationary” impact in Latin America’s biggest economy.