Brazilís central bank kept its benchmark interest rate at a record low on Wednesday, shrugging off pressures calling for monetary stimulus as the economy struggles to recover from a brutal recession.
The bank has held its Selic rate at 6.5 per cent for more than a year against a backdrop of weak economic activity, low inflation and uncertainty over much-needed economic reforms. Brazilís economy shrank in the first quarter of the year for the first time since 2016, and April and May indicators suggest Latin Americaís largest economy continues to limp forward.
Annual consumer price inflation in Brazil fell to 4.66 per cent in May from 4.92 per cent in April, and policymakers expect it to end the year at 3.84 per cent.
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