Brazil lowers rates to record-low 4.5%
Weak growth requires interest rates “below the structural level”, says the central bank
The Central Bank of Brazil reduced interest rates by 50 basis points to a new record low of 4.5% on December 11 in a bid to boost weak economic growth.
Since July, the central bank has cut the key Selic rate by 200bp. The monetary policy committee thinks “economic conditions prescribe stimulative monetary policy, i.e., interest rates below the structural level”.
Below-target inflation is opening space for rate setters to provide stimulus for an economy that is expected to grow by just 1.2% in
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