Brazilian Central Bank cuts interest rate to record low
Monetary authority slashes interest rates to a record low 5.5% for the second time in less than two months, as Latin America's biggest economy expresses concerns over "more intense slowdown in the global economy."
The back-to-back rate cuts come after the Central Bank long resisted pressure to lower borrowing costs for fear of fanning inflation as President Jair Bolsonaro struggled to push his signature pension reform bill through Congress.
But the lower house Chamber of Deputies voted overwhelmingly in favor of the controversial measure, which is now before the upper house Senate.
Its approval is seen as crucial to paving the way for other much-needed reforms, including tax, that Bolsonaro has promised.
In July, his government unveiled an US$11.2 billion stimulus plan.