Brazil’s Central Bank Cuts Rates to 11.25% as Inflation Slows
- Central bankers cut benchmark rate by fifth time, to 11.25%
- Lula government pressures for more spending as growth slows
Central Bank headquarters in Brasilia, Brazil.
Photographer: Arthur Menescal/BloombergThis article is for subscribers only.
Brazil’s central bank cut its key interest rate by half a percentage point and promised to keep the same easing pace in the next few meetings, after inflation slowed within the tolerance range and new signs of a weakening economy emerged.
The bank cut the benchmark Selic to 11.25% on Wednesday, as expected by all analysts surveyed by Bloomberg and in line with prior guidance from the monetary authority. Policymakers have now lowered borrowing costs by 2.5 percentage points since August.