The Central Bank of Brazil reduced its policy rate to a record low on February 5, saying the move was justified by the balance of risks despite a recent rise in inflation.
The CBB’s nine-member monetary policy committee (MPC) unanimously voted to reduce the key Selic rate by 25 basis points to 4.25%. The MPC cut rates by 200bp in the second half of last year in a bid to stimulate the economy.
The MPC’s policy statement seemed to rule out further cuts in policy rates in the short term. It said
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