The Brazilian Central Bank on Wednesday night reduced its base interest rate for the second time in a row, trimming 25 basis points for a new rate of 13.75 percent. The bank’s monetary policy committee was unanimous in its decision, which was widely expected by financial markets. Brazil still has one of the highest base interest rates in the world as the country continues to fight down inflation, now hovering just below the 8 percent mark. In ordering the modest cut, the central bank said lower interest rates could help revive the country’s recessionary economy. Earlier Wednesday, the Brazilian Census Bureau (IBGE) reported a third-quarter decline in GDP of 0.8 percent, the seventh quarterly decline in a row.
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