The Brazilian Central Bank announced Wednesday that the country's annual basic interest rate (Selic) has been cut from 11.5 percent to 11 percent, Xinhua informed.

It was the third consecutive cut of the Selic rate this year after two previous cuts of 0.5 percent each. But before that, the committee had raised the rate by 1.75 percent, so the Selic rate still accumulates a 0.25-percent rise this year.

The bank's unanimous decision had been expected by the market. Most economists placed their bets on a 0.5-percent cut when consulted by the latest Focus market survey.

According to the bank, a moderate rate adjustment is consistent with a downside of Brazil's inflation rate to meet its 2012 inflation target. It also helps mitigate the effects of a more restrictive global scenario.

The 2012 inflation target, the same as that of 2011, is set at 4.5 percent with a tolerance of 2 percent.

The committee's Wednesday meeting was the last one this year, and the next meeting will be held next January.

FOCUS