Brazil Signals Biggest G-20 Rate Cut Near End on Recovery

Brazil’s central bank signaled a yearlong easing of interest rates may have come to an end as record low borrowing costs start to revive the economy. Swap rates rose in Sao Paulo.

Led by bank President Alexandre Tombini, policy makers reduced the Selic rate yesterday by a half-point to 7.5 percent, as forecast by all 60 economists surveyed by Bloomberg. The eight-member board, in a statement accompanying its unanimous decision, said that if there is room for an additional adjustment, it “should be carried out with maximum parsimony.”