Brazil central bank cuts rate to new low, sees room for more

Brazil’s central bank cut its benchmark interest rate to a new low of 6.00% on Wednesday, an aggressive first move in a widely anticipated easing cycle to inject life into a moribund economy and prevent inflation from slipping too far below target.

The reduction from 6.50% was the central bank’s first rate cut since March 2018, following significant progress on domestic fiscal reforms and looser monetary policy abroad, including the U.S. Federal Reserve’s rate cut earlier in the day.

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