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12 jan 2017

Central Bank makes largest cut to basic interest rate

Selic benchmark rate went from 13.75% to 13% p.a. Central Bank also modified its inflation forecast for this year and 2018

In a statement issued after the decision, the Central Bank's executive board said that economic activity below expectations and inflation at a favourable level have influenced the decision to increase the pace of rate cuts. Before yesterday's meeting, that pace was somewhat less intense, with the Selic decreasing by 0.25 p.p. at each meeting.

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