Brasília, 3/9/2006 (Agência Brasil - ABr) - The Monetary Policy Committee (Comitê de Política Monetária) (Copom) has reduced Brazil's basic interest rate, the Selic, by 0.75 percentage points, lowering it from 17.25% to 16.50% per year. Copom has been steadily and gradually reducing the Selic since September of last year. Since then the rate has fallen 3.25 percentage points.

A note from Copom says the decision was by a 6 to 3 vote, with the three other votes in favor of a bigger reduction of one percentage point.

Translation: Allen Bennett