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Brazil's central bank leaves interest rate unchanged at 14.25%

Staff writer ▼ | June 10, 2016
Brazil held interest rates steady for the seventh straight time, resisting pressure to slash borrowing costs amid a recession as inflation remains near double digits.
Banco Central
Brazil   Copom decided to keep Selic
In a unanimous vote, the central bank's monetary policy committee, Copom, decided at its last meeting led by governor Alexandre Tombini to keep its benchmark Selic rate at 14.25%, the highest in nearly a decade.

A deepening recession and lingering political turmoil is renewing pressure on the central bank to start cutting borrowing costs to ease a crisis that has cost nearly 2 million jobs over the last year.

Despite the recession, which could be the worst in the country's history, inflation has remained persistently high due to rising government-controlled prices and a weaker currency.

The central bank exactly repeated its last decision statement, acknowledging it has made some progress in battling a surge in prices, but not enough to prompt policymakers to cut rates now.

Inflation rose to 9.32% in the 12 months through May, above market expectations and the 4.5% center of the official target range, according to official data.