Brasília, 4/20/2006 (Agência Brasil - ABr) - Yesterday Brazil's equivalent of the Fed, the Monetary Policy Committee (Comitê de Política Monetária) (Copom), announced another reduction in the country's key interest rate (known as the Selic). The annual rate dropped from 16.50% to 15.75%. The decision was unanimous.

The further lowering of the Selic was expected by the market.

The next meeting of the Copom will be in 45 days. In a note the Copom said it continues to closely monitor the macroeconomic scene in order to define its monetary strategy.

Translation: Allen Bennett