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Brazil Cements Pledge for Aggressive Easing to Help Recovery

  • BCB leaves door open to change in pace of easing:Goldman Sachs
  • Policy makers cut benchmark Selic by most in nearly 8 years
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Brazil’s central bank signaled further aggressive key rate cuts are in store after slashing borrowing costs by the most in nearly eight years to help boost growth.

Policy makers led by central bank President Ilan Goldfajn on Wednesday voted unanimously to reduce the benchmark rate by a full percentage point to 11.25 percent following two 75 basis-point cuts. The monetary authority has lowered borrowing costs 300 basis points since beginning the easing cycle in October.