Brazil cuts rates to 16 per cent

Brazil's central bank cut its benchmark lending rate to a three-year low on Wednesday 14 April to 16 per cent.

Policy makers cut the overnight interbank rate a quarter- point to 16 per cent. The reduction, the ninth in 11 months, brings the rate down 10.5 percentage points from a four-year high in June.

Central bank President Henrique Meirelles is trying to jumpstart an economy that has been slow to rebound from its first annual contraction since 1992.

The central bank said in its statement that