Brazil Cuts Selic Rate To 12.75%

In line with market expectations, Brazil’s Central Bank cut the benchmark Selic rate by 25 basis points to 12.75% on Wednesday. The Bank said the rate cut decision was unanimous. The government hopes the continued rate reductions – this is the fourteenth in 18 months – will stimulate growth. Brazil’s economic expansion – GDP grew by 2.9% last year – lags well behind that of almost all other countries in the region.