Andres Schipani in Florianópolis 13 MINUTES AGO
Brazil’s central bank slashed its benchmark interest rate for the first time in over a year, as economic recovery grinds to a halt amid lowering inflation and advances in key reforms.
The Selic rate hit a new record low of 6 per cent on Wednesday after the monetary policy committee, known as “Copom” — which for the first time in its five-decade history has two women on its nine-member board — axed 50 basis points, spurring expectations it will embark on an aggressive interest rate-cutting cycle.
The Selic has been frozen since March last year. But Brazil’s central bank said that advances in a key reform of the country’s generous pension system was underpinning rate cuts at a time when economists have repeatedly revised down their 2019 growth estimates, with some calling for monetary easing.