CLEAN : Banco Central de Brasil recorta tasa de interes en 0,25 pp a 14%

The Central Bank of Brazil reduced its interest rate by 0.25 percentage points to 14%, marking the first cut in four years due to improved inflation prospects and potential economic recovery. This decision, anticipated by analysts, aims to lower credit costs, enabling increased borrowing and spending by individuals and businesses, thus boosting economic activity. The Brazilian industry welcomed the move as crucial for growth. Brazil's economy, the largest in Latin America, has been in recession, with a significant GDP contraction last year and further decline expected. The government, led by Michel Temer, is pushing for a 20-year public spending cap reform linked to inflation.

What was the recent change made by the Central Bank of Brazil regarding interest rates?

• Kept the rate unchanged

• Reduced the rate by 0.25 percentage points

• Doubled the interest rate

• Increased the rate by 0.25 percentage points

How is the reduction in interest rates expected to affect the cost of credit?

• It will decrease the cost of credit

• It will have no effect on the cost of credit

• It will increase the cost of credit

• It will make credit unavailable

What is one potential benefit of lower interest rates for businesses?

• Higher taxes

• Reduced market competition

• Increased borrowing costs

• Ability to borrow more and increase production

Why did industry representatives in Brazil support the interest rate cut?

• It will lead to higher unemployment

• It will increase inflation

• It will reduce exports

• It is seen as essential for economic growth

What economic condition is Brazil currently facing according to the transcript?

• Deflation

• Rapid economic growth

• Stability with no growth

• Recession