Brasília, 11/20/2003 (Agência Brasil - ABr) - Yesterday the Brazilian equivalent of the Fed (Comitê de Política Monetária do Banco Central) (Copom), announced a reduction in Brazil's benchmark interest rate, the Selic. Copom lowered it 1.5 percentage points from 19% to 17.5%, bringing it to where the rate was in September 2002. At that time, due to turbulence caused by the presidential election, the rate rose to a high of 26%.

Yesterday's lowering of the Selic was the sixth consecutive reduction by the Copom at regularly scheduled meetings. Copom has one more scheduled meeting for this year, on December 16th and 17th. (AB)