Central bank of Brazil cuts base rate to 19%
Source: AE Brazil
The Brazilian Central Bank's monetary policy committee (Copom) announced Wednesday evening that it had cut Selic (base rate) one percentage point to 19% after its monthly two-day meeting.
The committee set no bias.
This was the fifth reduction in a row to the rate, which has fallen 7.5 percentage points from 26% in June. Brazils base rate is now at its lowest since September 18, 2002.
A Copom statement said that the cut was made because inflation is falling into line with targets. The minutes of the meeting will be released on Oct 30 (next Thursday).
The rate of reduction was within most observers expectations. In the minutes of Copoms September meeting the committee indicated that there would be lower cuts to Selic in the last months of year. In September there was a 2 point cut and in August one of 2.5 points.
The next Copom meeting will be on November 18 and 19.
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