BRASÍLIA: On Wednesday, Brazil’s Central Bank announced a 0.75 percent reduction of the country’s basic interest rate to 13 percent per year. It marks the third straight occasion that the bank’s Monetary Policy Committee decided to slash Brazil’s interest rate.
Although everyone expected a lowering of the Selic rate, the 0.75 percent reduction came as a surprise. Only four of 48 economists consulted by Bloomberg anticipated such a move. Markets expected a more conservative approach, a 0.50 percent reduction.