Brazil cuts interest rate to lowest level since March

The Brazilian Central Bank announced Wednesday it would cut the country's annual basic interest rate (Selic) by 0.5 percent to 11.5 percent. This is the lowest level the Selic has had since early March. It is also the second consecutive cut in the Selic rate this year after the Monetary Policy Committee of the Central Bank (Copom) cut it by 0.5 percent for the first time in late August. However, the overall rate for 2011 remains 0.75 percent higher so far compared to 2010 due to several increases earlier in the year. Copom is scheduled to hold its last meeting of the year in late November to decide whether to make any further changes in the Selic rate. The latest market survey carried out by the Central Bank projected the rate to drop to 11 percent by the end of the year, indicating that another cut could result from the November meeting.