Wednesday, August 29, 2012

Aug. 29, 2012, 7:21 p.m. EDT

Brazil cuts key rate to record low of 7.5%

Portfolio Relevance
By Carla Mozee
LOS ANGELES (MarketWatch) -- Brazil's central bank late Wednesday cut the country's benchmark interest rate by a half-percentage point to 7.5%, a record low. The decision was in line with widely held analyst expectations, and marked the ninth consecutive rate cut. Monetary-policy makers began cutting the rate, known as the Selic, in August 2011, citing deterioration in growth outlooks for major economies as reason for the unexpected move. A weekly survey conducted by the central bank released this week showed economists have cut their 2012 expectations for economic growth to 1.73%, down from 1.75% a week earlier. The government will release figures for second-quarter economic activity on Friday. 

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