Brazil cuts key rate to 13.75%
AgenciesBrazil’s central bank cut its benchmark interest rate for the fifth time in a row on Wednesday. President Luiz Inacio Lula da Silva hopes the move will boost the economy as...
Brazil's central bank has reduced its key interest rate to 13.75 percent, marking the fifth consecutive cut in a row. President Luiz Inacio Lula da Silva anticipates the move will stimulate the economy ahead of his re-election bid in October. The Selic rate, one of the world's highest, has been lowered from 14 percent. This cut aligns with an easing cycle initiated in March following prolonged rate increases.
The decision follows the U.S. Federal Reserve's recent 25 basis point hike to a 3.75 to 4 percent range, a move that contradicted President Donald Trump's desire for rate cuts before the November midterm elections. Lula has advocated for lower rates to spur growth during his re-election campaign. However, the central bank has proceeded cautiously due to rising oil prices sparked by the U.S.-Israeli conflict with Iran and uncertainties surrounding monetary policy in other major economies.
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