Brazilian Central Bank cuts interest rate to 10.25%
The Brazilian Central Bank has cut interest rates by one percentage point per cent, the third straight decrease in as many months.
Policymakers voted unanimously to reduce the rate from 11.25 to 10.25 per cent, a record low for the country since measurements started un 1996.
The move by the monetary policy committee (Copom) aims to boost the economy and follows cuts of 150 basis points last month and 100 basis points in January.
It was in line with economists’ expectations, who believed that the Central Bank was unlikely to repeat the previous 1.5 percentage point cut due to recent signs that the financial markets are bouncing back.
"Evaluating the macroeconomic scenario and looking to expand the process of monetary easing, the Copom decided unanimously to cut the Selic rate to 10.25 percent, without bias," a statement from the committee said.
Meanwhile, Brazilian president Luiz Inacio Lula da Silva has predicted that the country will emerge from the international financial crisis in an "extraordinary manner", according to Xinhua.
