Brazil central bank keeps rates unchanged
2014-05-29 15:20:05
The Brazilian central bank kept its key interest rates unchanged as widely expected on Wednesday, ending one of the world's longest tightening cycle.
Evaluating the evolution of the macroeconomic scenario and the outlook for inflation, the Committee decided unanimously to keep the Selic rate at 11.00 percent, the bank said in a statement.
The bank has raised the rate by a cumulative 375 basis points since April 2013, after the currency depreciated sharply, fueled by high inflation.
Inflation remains close to the 6.5 percent upper band of the target. Consumer prices advanced 6.3 percent in April.
Higher interest rates are weighing on economic activity. GDP growth is expected to ease this year from 2.3 percent in 2013.