Central Bank of Brazil lowers bank reserve requirements in bid to boost liquidity
Reserves held against deposits cut in half as bank hopes to inject $20bn into economy
The Central Bank of Brazil (CBB) has lowered reserve requirements for banks in a move to inject 45 billion reais ($20 billion) into the country's stagnating economy ahead of presidential elections later this year.
The CBB, which raised interest rates by 375 basis points to 11% in the year to April to fight above-target inflation, said on Friday the new measure "aimed at improving the distribution of liquidity in the economy" following a "recent moderation in credit" and a "decrease in the level
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