The Brazilian Central Bank on Wednesday reduced its base interest rate by a full percentage point to 8.25%, its lowest level in four years. The bank’s policy committee decision was unanimous. It was the eighth straight rate reduction for the bank. A year ago, the base rate stood at a towering 14.25%. The rate cut came the same day as announcement of another decline in Brazil’s 12-month inflation rate, which fell to just 2.46% as of August. In a brief statement, the bank noted what it called “a gradual recovery of the economy” against a background of tame inflation. The bank hinted that it will soon begin a process of “bringing a gradual close to the cycle of rate reductions.”
Link to Central Bank release
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