Brazil Central Bank Reduces Basic Interest Rate to 2 Percent per Year, Lowest in History

The outlook for growth is still cloudy. The central bank's policy makers have said the government needs to get spending under control and keep up the pace of economic reforms for rates to stay low.

RIO DE JANEIRO, BRAZIL - Brazil's central bank cut its key Selic lending rate to a record low on Wednesday, and left the door open for more cuts, as the outlook for inflation remains below target amid the impact of the coronavirus pandemic on the economy.

The bank's monetary policy committee trimmed the Selic to 2.00 percent from 2.25 percent, the ninth consecutive reduction. Any future cuts might take place with more time between changes amid greater-than-normal uncertainty about economic growth, the bank said in its statement.

“Due to prudential and financial stability reasons, the . . .

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