Brazil’s Central Bank Cuts Rates for Third Straight Meeting

Brazil’s central bank cut its benchmark interest rate for a third straight meeting following on the passing of a key reform that spurred hopes of a recovery in the country’s sluggish economy amid low inflation, the Financial Times reported. The Selic rate hit a new low of 5 per cent on Wednesday after the monetary policy committee, known as “Copom”, approved a cut of 50 basis points following their first cut in over a year in July, on the day the US Federal Reserve also eased its monetary policy. “The Copom evaluates that process of reforms and adjustments needed in the Brazilian economy has advanced, but it emphasizes that persevering in this process is essential for the fall of the structural interest rate and for the sustainable recovery of the economy,” the Brazilian central bank, led by the UCLA-trained Roberto Campos Neto, said in a statement. Read more