Hit by virus, Brazil cuts interest rate to record low

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Hit by virus, Brazil cuts interest rate to record low
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'The current economic environment demands extraordinarily strong monetary stimulus,' says Brazil's central bank. coronavirus

SHOPS CLOSED. An empty popular shopping street in downtown Sao Paulo, Brazil, on March 24, 2020. Photo by Nelson Almeida/AFP

BRASÍLIA, Brazil – Brazil's central bank slashed its benchmark interest rate by a bigger-than-expected three-quarters of a percentage point on Wednesday, May 6, saying Latin America's biggest economy needed"extraordinarily strong" measures to fight the devastating impact of theThe central bank set the Selic rate at a record-low 3%, a more aggressive move than the half-point cut analysts had forecast.

The bank said the decision was made unanimously by its board of governors, and that another cut was likely at their next meeting, on June 17.

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