Brazil’s central bank slashed its key interest rate by a half-point for the second straight time, advancing the easing that President Luiz Inacio Lula da Silva hopes will kickstart Latin America’s biggest economy.
In line with market expectations, the bank’s monetary policy committee said its members had unanimously voted to lower the benchmark Selic rate to 12.75 percent. The cut came the same day the US Federal Reserve paused its own aggressive series of rate increases, but predicted a long fight against inflation was still ahead.
Brazil looks headed in the opposite direction, at least for now. The central bank indicated further monetary easing was on the way.—AFP
