The Brazilian Central Bank on Wednesday slashed its base interest rate by a full percentage point to 9.25%, the lowest rate in nearly four years. The decision by the bank’s Monetary Policy Committee was unanimous. It was the seventh straight rate cut in a row. Brazil’s base rate peaked in 2016 at 14.25%. The Central Bank has been encouraged to cut rates by the steady decline in Brazilian inflation, which now hovers at about 3.0%, well below the government’s 4.5% target for 2017 inflation. In a brief note, the Central Bank said current economic indicators show a steady movement by the economy toward stability.
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