BRASÍLIA -- Brazil's central bank Wednesday cut its benchmark interest rate to near its lowest level ever, to boost a feeble economy that has begun to recover despite political paralysis in Latin America's largest nation.
The bank trimmed its Selic rate to 7.5% from 8.25%. A rapid slowdown in price increases has allowed the bank to cut the Selic from 14.25% over the past year. Annual inflation was 2.5% in September, well below the bank's target of 4.5%.
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The bank said inflation developments remain favorable, and that the country's economic situation "prescribes accommodative monetary policy."
Wednesday's cut follows four larger ones of a full percentage point each. Central-bank communication has indicated the Selic will end this year at 7%, with analysts divided over the possibility of further cuts in 2018.
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(END) Dow Jones Newswires
October 25, 2017 16:53 ET (20:53 GMT)