Brazil: Central Bank cuts SELIC rate by a further 50 basis points
July 11, 2012
At its 11 July meeting, the Central Bank's Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to reduce the benchmark SELIC interest rate by 50 basis points to 8.00% in a unanimous vote, in a decision expected by the market. The move followed a similar rate cut in May and represented the eighth consecutive meeting in which policymakers opted to cut interest rates. According to a short communique released after the meeting, policymakers stated that the external environment remains largely disinflationary and that inflation risks are subdued, thus supporting COPOM's decision.