Stênio Ribeiro         Reporter Agência Brasil

Brasília – The Central Bank’s Monetary Policy Committee (“Copom”) ended its seventh regularly scheduled meeting of the year yesterday (Wednesday, October 19) with a unanimous decision to lower the country’s benchmark interest rate, the Selic, by 0.5 percentage points, to 11.50%. It was the second consecutive reduction of 0.5 percentage points (the first, in a decision by a vote of 5 to 2, was at the end of August). The next Copom meeting is scheduled for November 29 and 30, and the market now expects another reduction.

The Selic started the year at 10.75% and by July, after increases in five consecutive Copom meetings, had risen to 12.50%.

In a note following yesterday’s meeting, the members of Copom justified their decision mentioning the need to “mitigate the effects of a more restrictive global environment,” a reference to the economic crisis, especially in the United States and Europe. The note also explained the measure as part of an effort to reach their inflation target in 2012 (inflation, running over 7%, will be above the target ceiling this year).

Allen Bennett – translator/editor The News in English

Link - Copom mantém processo de redução dos juros e baixa Selic para 11,5% ao ano