The Brazilian Central Bank on Wednesday night cut the country’s base rate for the first time since October of 2012, a modest 25 basis point reduction. In a unanimous decision, the bank reduced the base rate to 14.0 percent from the previous 14.25 percent. The bank cited easing concerns about inflation. Inflation is currently running at about 8 percent but is expected to ease to 7 percent by the end of the year and to 4.5 percent by next year. However, the Central Bank conditioned further rate cuts on congressional approval of fiscal austerity measures. The bank said the measures are necessary to assure long-term control of inflation.
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