RIO DE JANEIRO, June 20 (Xinhua) -- The Brazilian Central Bank's Monetary Policy Committee (Copom) announced late Wednesday its decision to maintain the country's key interest rate at 6.5 percent.
It was the second time the committee maintained the rate at this level.
In May, the central bank initiated a series of 12 consecutive cuts to the key Selic interest rate, citing volatility in the markets and investor frustration over the government's inability to push through a pension reform and other austerity measures.
The committee justified its decision to maintain the interest rate by saying that the inflation target for this year would be achieved.
"In Copom's evaluation, the evolution of the basic scenario and risk balance indicate the maintenance of the Selic rate at its current level," the committee said.
The next steps in the monetary policy will depend on future economic activity, risk balance and projections and expectations for the inflation rate, it added.
The Brazilian economy continues to recover from its worst recession in history, which extended through 2016.
"The basic scenario is for a continuation of the process of recovery in the Brazilian economy, but at a more gradual rate," the bank said in a statement.
