Brazil surprises with aggressive rate cut to rescue economy

Brazil surprised markets with a larger-than-expected interest rate cut on Wednesday, stepping up its monetary easing to revive an economy mired in its worst recession ever.

In a unanimous vote, the central bank’s nine-member monetary policy committee, known as Copom, decided to cut its benchmark Selic rate BRCBMP=ECI by 75 basis points to 13.00 percent after two straight cuts of 25 basis-points each.

An overwhelming majority of analysts had expected a rate cut of 50 basis points with only a few predicting a more aggressive cut that brought rates to a near two-year low

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