Brazil Central Bank Cuts Selic Rate to 8.25% -- Update

By Paulo Trevisani and Jeffrey T. Lewis Features Dow Jones Newswires

BRASÍLIA -- Brazil's central bank on Wednesday cut its benchmark lending rate by a full percentage point as prices increased at the slowest pace in almost 20 years, and signaled a smaller rate cut at its next monetary policy meeting.

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The bank cut its key Selic rate from 9.25% to 8.25%, the lowest level since July 2013 and just 1 percentage point above its 2013 all-time low.

The bank also suggested that an end to the current round of rate-cuts is in sight.

The monetary policy committee sees "a moderate reduction of the pace of easing as appropriate," given the outlook for the economy, the bank said in the statement announcing the rate cut. "In addition, under those same circumstances, the (committee) foresees a gradual ending to the cycle."

Write to Paulo Trevisani at paulo.trevisani@wsj.com and Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

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September 06, 2017 17:55 ET (21:55 GMT)