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Brazil cuts interest rates to record low of 7%

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Staff Writer | December 7, 2017
Policymakers at the Brazilian central bank on Wednesday cut the benchmark Selic rate by 50 basis point to a historic low of 7 per cent as inflation continues to drop while the economy inches forward from a brutal recession.
Brazil central bank
LatAm   Selic rate
The move was widely expected, and analysts are forecasting the Selic to remain unchanged at 7 per cent throughout 2018.

Lower rates coupled with low inflation — down to 2.7 per cent in October from over 10 per cent early last year — are helping Brazil’s economy emerge from its worst-ever recession.

In the third quarter, gross domestic product eked out a 0.1 per cent quarter-on-quarter gain and grew 1.4 per cent versus the same period last year.


 

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