Mylena Fiori
Reporter Agência Brasil

Brasília – Declaring that "there is no danger of inflationary pressure if monetary policy is more flexible at this moment," the Monetary Policy Committee (Copom) unanimously dediced to reduce Brazil's benchmark interest rate (Selic) from 19.75% to 19.50% per year.

The decision was made yesterday at the monthly meeting of the Copom and is the first time the Selic has fallen since September 2004 when Copom began implanting a more rigid monetary policy, slowly and steadily raising the rate from 16% to 19.75%.

One of the reasons cited by Copom for the decision to lower the Selic was the fact that the Broad Consumer Index (IPCA) has shown a drop in prices for three consecutive months (June, July and August).

Translator: Allen Bennett