Brazil cuts basic interest rate to record lowJuly 12th, 2012 - 1:45 pm ICT by IANS
Rio de Janeiro, July 12 (IANS) Brazil’s central bank cut its benchmark Selic interest rate Wednesday by half a percentage point to a record low of 8 percent in the eighth consecutive rate cut this year.
The country is currently running a low risk of inflation, allowing for room for more rate easing, said the Monetary Policy Committee of Brazil, which has cut the basic interest rate by 3 percentage points since the beginning of the year, reported Xinhua.
The reduction came as expected by the market and at a time when the government is struggling to revive the country’s flagging economy.
Brazil’s industrial output fell 1.8 percent last year, prompting expectations of a further cut of 0.75 percentage points.
The government has rolled out favourable policies, including lower taxes, cheaper credit and rate cuts to stimulate the domestic economy.
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Tags: brazil, domestic economy, flagging economy, inflation, interest rate, lower taxes, Monetary Policy Committee, percentage point, percentage points, rio de janeiro, risk, s central, s industrial, xinhua