The Brazilian Central Bank, in a unanimous decision on Wednesday, cut the nation’s base interest rate for the tenth time in a row. The bank’s Monetary Policy Committee cut the rate to 7.0% from the previous 7.5%. The rate is now the lowest since the committee was formed in 1996. The bank began cutting rates in 2016, when the base rate stood at a towering 14.25%. Wednesday’s move was in line with financial market expectations. In an accompanying statement, the bank noted that risk factors are now “in balance,” with Brazil’s economy enjoying a steady recovery from recession while inflation remains low. Inflation is currently just under 3.0%. Most economists now expect the bank to hold the base rate steady, possibly through the end of 2018.
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