Brazil opts for moderate rate cut despite deepening recession

Brazil’s central bank cut interest rates by 25 basis points on Wednesday, maintaining a slow pace of monetary easing despite a sharp economic contraction in the third quarter that suggested a grueling recession could stretch into a third year.

The central bank resisted pressure for a hefty rate cut even after data released earlier on Wednesday confirmed fears the once-booming emerging market is struggling to pull out of its worst recession in memory.

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