Brazil central bank weighs new rate cut to unprecedented low of 7.25%
October 11, 2012, 12:11 am TWN
BRASILIA--Brazil's central bank met Tuesday to weigh a 10th interest rate cut to a record low of 7.25 percent in order to stimulate the sluggish economy.
Analysts predicted that the bank's monetary policy committee (Copom) will wind up its meeting Wednesday with the announcement of a quarter-percentage point cut following a bank forecast of 1.6 percent growth in Brazil's GDP.
“We expect a quarter-percentage point cut at the (Copom) meeting which ends Wednesday,” said economist Felipe Queiroz of the Brazilian agency Austin Rating.