Logo of Phnom Penh Post newspaper Phnom Penh Post - Brazil central bank cuts interest rate

Brazil central bank cuts interest rate

Content image - Phnom Penh Post
Brazilian President Jair Bolsonaro delivers a speech in Brasilia on July. AFP

Brazil central bank cuts interest rate

Brazil's central bank cut its benchmark interest rate on Wednesday to a new record low of 4.25 per cent, seeking to boost what it called the “gradual recovery” of Latin America’s largest economy.

The quarter-point cut, in line with market expectations, was decided unanimously by the bank’s monetary policy committee, it said in a statement.

It was the fifth straight decrease since July 2019. But the bank indicated the loosening cycle was coming to an end.

“The Monetary Policy Committee understands that the current stage of the economic cycle demands caution,” it said.

“The Committee sees interrupting the monetary loosening cycle as appropriate. It emphasises that its next steps will continue to depend on how economic activity evolves, the risk outlook, and inflation expectations and projections.”

The Brazilian economy is slowly bouncing back from its worst-ever recession, which ended in 2017 after two years. The government is currently forecasting growth of 2.4 per cent this year, double the estimate for 2019.

But although far-right President Jair Bolsonaro’s government has won plaudits from the business world for pushing through long-sought economic reforms, clouds linger.

The deadly new coronavirus outbreak in China – Brazil’s top trading partner – has taken a hit on leading Brazilian exporters, including state oil company Petrobras and mining firm Vale.

Vale’s stock-market value has plunged by around $5.5 billion since January 23.

And statistics released on Tuesday showed Brazil’s industrial output fell by 1.1 per cent last year, after two years of growth.

Brazil’s inflation rate came in at 4.31 per cent for 2019.

Analysts polled by the central bank are forecasting inflation of 3.4 per cent this year, on the lower side of the bank’s target range of four per cent plus or minus 1.5 percentage points.


  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway