Brazil Cuts Policy Rate By 25 Bps

(RTTNews) - Brazil's central bank lowered its benchmark rate for a fourth consecutive time on Wednesday.

The monetary policy committee, known as Copom, of the Banco Central do Brasil decided to lower the key selic rate by 25 basis points to 14.00 percent.

The bank has lowered the rate by 100 basis points since March.

Copom said this decision is consistent with the strategy for inflation convergence to a level around its target, throughout the relevant horizon for monetary policy.

"Due to the dynamic of the risks associated with the evolution of prices, the Committee reaffirms that the total magnitude of the calibration cycle will be established in light of new information aiming to ensure inflation convergence to the target," the bank said in a statement.

Further, the committee observed that in the current scenario of heightened uncertainty, deanchoring of expectations, and elevated risks surrounding the reference scenario, it requires serenity and cautiousness in the conduct of monetary policy.