RIO DE JANEIRO, Feb. 5 (Xinhua) -- Brazil's Central Bank's Monetary Policy Committee (Copom) on Wednesday lowered the country's annual basic interest rate (Selic) by 25 basis points to 4.25 percent, the lowest since Brazil adopted an inflation-targeting framework in 1999.
"Given the lagged effects of the monetary easing cycle initiated in July 2019, the Committee considers (it) appropriate to interrupt the monetary easing cycle," the Copom said in a statement.
This is the fifth consecutive rate cut by the central bank, and the reduction was expected by the financial market.
The Copom said the Selic rate will most likely not experience further cuts in the near future, and its next steps will depend on the evolution of the economic activity, the risk balance and the projections for the inflation rate.
