Brazil central bank cuts rate to new historic low
BRASILIA (AFP) - Brazil's central bank on Wednesday slashed its interest rate for the 10th time since August last year, to a record low of 7.25 percent, in a bid to stimulate the sluggish economy.
The bank's monetary policy committee Copom, which announced the quarter-point reduction after the market closed, said the decision was made given inflationary risks, the domestic economy and global economic uncertainty.
Late last month, the central bank lowered its forecast for Brazil's economic growth in 2012 from 2.5 percent to a measly 1.6 percent, but is counting on that number to pick up next year.
The government, which has launched a series of stimulus measures this year, is banking on two percent GDP growth this year - down from an earlier forecast of three percent - while market analysts are forecasting a 1.5 percent rise.