Brazil's Central Bank Cuts Benchmark Rate to Record Low 7%

By Paulo Trevisani Features Dow Jones Newswires

BRASÍLIA -- Brazil's central bank cut its benchmark interest rate to a record low Wednesday as subdued inflation allowed policy makers to focus on shoring up the economy after an unexpected slowdown in the third quarter.

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The bank lowered its Selic rate by half a percentage point to 7%, the lowest level since it was created in 1999. The cut was in line with market expectations and marked the bank's 10th straight reduction in interest rates since October 2016, when the Selic stood at 14.25%.

In a postmeeting statement, the bank said a "moderate reduction of the pace of easing [is] appropriate," in a sign it could continue lowering interest rates when the monetary policy committee convenes again in February.

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Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

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December 06, 2017 15:55 ET (20:55 GMT)